October 05, 2022 23:43 GMT
The pull lower in wider core global FI markets pressured JGB futures during the overnight session, with the contract finishing -15, after a move away from worst levels alongside a similar dynamic in U.S. Tsys.
- 10-Year JGBs will likely hover just below the upper limit of the range permitted under the BoJ’s YCC mechanism in this environment.
- Local headline flow has been dominated by reports pointing to subsidies that would aim to lower energy bills, which could be included in the impending fiscal support package.
- Weekly international security flow data, the latest liquidity enhancement auction covering off-the-run 5- to 15.5-Year JGBs and BoJ Governor Kuroda’s latest speech at a meeting with branch managers headline domestically on Thursday.