Futures Soften Overnight, Data Mixed, Long Weekend Inbound

JGB futures followed UK Gilts and U.S. Tsys lower in overnight dealing, finishing post-Tokyo trade -13, a touch off of worst levels, with the overnight movements in wider core global FI markets presenting the potential for curve steepening in early Tokyo trade, given the BoJ’s lack of relative control beyond the 10-Year point of the curve and

• Note that 10-Year JGBs failed to changed hands yesterday, per market data vendors, the first such instance since 21 September.
• JPX data showed that international investors were net sellers of JGB futures last week, although net levels weren’t anything extraordinary.
• Household spending and wage data has already crossed, with the former missing exp. and the latter providing a modest beat (albeit still falling comfortably in real terms, -1.7% Y/Y).
• The local docket is fairly subdued for the remainder of the day, with lower tier data prints and 3-month bill supply due.
• A reminder that Japan will observe the health sports day holiday on Monday, resulting in the closure of the country’s financial markets.