August 17, 2022 23:37 GMT
The impetus from UK Gilts and then U.S. Tsys drove JGB futures in post-Tokyo trade, with the contract ultimately finishing overnight dealing 16 ticks below Wednesday’s settlement levels, a little above post-Tokyo lows.
- Domestic headline flow has been centred on Sino-Japan relations, with little in the way of JGB market impact foreseen in the wake of a meeting between Japan’s national security advisor Akiba and Chinese Foreign Minister Wang Yi.
- 20-Year JGB supply headlines the domestic docket on Thursday, while the latest round of weekly international security flow data will be combed over to assess capital flow gyrations. 12-month bill supply is also due.
- U.S. TY futures operate within touching distance of late NY session levels, which shouldn’t provide much in the way fresh impetus for futures at the Tokyo re-open. This will leave domestic participants’ reaction to the overnight gyrations in core FI markets at the fore, with any setup/concession ahead of today’s 20-Year JGB supply also eyed.