Futures Tick Lower Overnight, Global Data Impulse Eyed

JGB futures shed 13 ticks overnight, as the impulse derived from German CPI data and the prices paid component in the latest U.S. ISM m’fing survey applied pressure to the contract, adding to the momentum witnessed during the pullback from session highs on Wednesday.

• The latest BoJ survey on market functioning showed a further deterioration of market conditions, even after the BoJ’s December YCC tweak (the survey was taken in early Feb). As a reminder, market functioning was cited as the key factor when the BoJ made the surprise adjustment in December, and the Bank remains under pressure to do more on this front, even after the recent SLF tweaks. Still, it continues to insist that the benefits of its current ultra-loose policy settings outweigh any negative spill overs.
• We haven’t seen much in the way of meaningful domestic headline flow since the Tokyo close, outside of the above.
• Q4 corporate performance data and the latest round of 10-Year JGB supply headline Thursday’s domestic docket.