Futures Stronger Ahead Of Domestic Data Drop

In post-Tokyo trade, JGB futures are stronger, closing +7 compared to settlement levels, after US tsys managed to post one of the few positive sessions for February. With tsy supply out of the way and record corporate issuance abating, US tsys finished with a bull-steepening (yields 2-5bps lower) ahead of key PCE Deflator data later today.

• Consensus for the core PCE print sits at 0.4% m/m. Supercore PCE could come in even stronger, with two eyeing a 0.55% increase.
• The second reading of US Q4 GDP revealed the economy grew slightly less than previously reported. Growth was revised to 3.2% compared to the initial estimate of 3.3%.
• US tsys were supported following a flurry of balanced Fedspeak. While Atlanta Fed President Bostic remains "comfortable" with a patient Fed strategy to address inflation, he still expects the first rate cut this summer.
• More cautiously, NY Fed President Williams reiterated the Fed has a "ways to go to sustained 2% inflation", while Boston Fed President Collins wants greater confidence in disinflation before softening policy.
• Today, the local calendar sees Retail Sales, International Investment Flows, Industrial Production and Housing Starts data, along with a speech from BoJ Board Member Takata in Shiga. The MoF also plans to sell Y2.9bn of 2-year JGBs.