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Futures Stronger Overnight With US Tsys, BoJ Rinban Operations Today

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In post-Tokyo trade, JGB futures are stronger, closing +14 compared to settlement levels, after US tsy yields finished 6-9bps lower on a news flow light session.

  • Canadian CPI inflation fell to 2.5% y/y in July. The core measure based on an average of the median and trimmed mean fell to 2.55%, slightly below consensus. Both figures were at their lowest levels in over 3 years.
  • Fed Bowman said Tuesday the Fed should cut interest rates if inflation continues to move towards the central bank's 2% goal, noting further welcome progress on inflation in the past couple of months in spite of upside risks.
  • Projected US rate cuts through year end gained: Sep'24 cumulative -33bps (-31bps), Nov'24 cumulative -63bps (-61bps) and Dec'24 -97bps (-94bps).
  • The focus now turns to Wednesday afternoon's July FOMC minutes. The Jackson Hole economic symposium will be held Aug. 22-24. Fed Chairman Powell is speaking at 1000ET Friday morning.
  • Spot gold (+0.35%) continued its ascent on Tuesday, rising to a fresh all-time high of $2531.75/oz.
  • Yesterday, ICYMI, the BoJ published two research papers, which were in favour of inflation persistence in Japan, citing chronic labour shortages as being supportive of wages and a marked shift in corporate pricing strategies.
  • Today, the local calendar will see Trade Balance data alongside BoJ Rinban Operations covering 1-10-year JGBs.
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In post-Tokyo trade, JGB futures are stronger, closing +14 compared to settlement levels, after US tsy yields finished 6-9bps lower on a news flow light session.

  • Canadian CPI inflation fell to 2.5% y/y in July. The core measure based on an average of the median and trimmed mean fell to 2.55%, slightly below consensus. Both figures were at their lowest levels in over 3 years.
  • Fed Bowman said Tuesday the Fed should cut interest rates if inflation continues to move towards the central bank's 2% goal, noting further welcome progress on inflation in the past couple of months in spite of upside risks.
  • Projected US rate cuts through year end gained: Sep'24 cumulative -33bps (-31bps), Nov'24 cumulative -63bps (-61bps) and Dec'24 -97bps (-94bps).
  • The focus now turns to Wednesday afternoon's July FOMC minutes. The Jackson Hole economic symposium will be held Aug. 22-24. Fed Chairman Powell is speaking at 1000ET Friday morning.
  • Spot gold (+0.35%) continued its ascent on Tuesday, rising to a fresh all-time high of $2531.75/oz.
  • Yesterday, ICYMI, the BoJ published two research papers, which were in favour of inflation persistence in Japan, citing chronic labour shortages as being supportive of wages and a marked shift in corporate pricing strategies.
  • Today, the local calendar will see Trade Balance data alongside BoJ Rinban Operations covering 1-10-year JGBs.