Futures Unchanged, National CPI Slightly Weaker Than Expected, BoJ Bond Buying Ops Later

JGB futures (JBM4) finished offshore Thursday trade unchanged at 145.41. This keeps us within recent ranges, with post BoJ highs back at 145.79.

• National CPI for Feb has just printed. The headline and core-core readings printing slightly weaker than expected. The headline y/y was 2.8% against a 2.9% forecast, although it was still a step up from the prior 2.2% outcome. Ex fresh food rose 2.8% y/y, in line with estimates. The ex fresh food, energy measure was 3.2% versus 3.3% forecast and 3.5% prior.
• In the JGB space, the 2yr yield finished above 0.19% yesterday, firmer in yield terms but still sub recent highs. Pressure in this space may be evident given firmer US front end yields in Thursday trade, although BoJ Governor Ueda told local parliament yesterday that the March rate rise was designed to avoid more aggressive rate rises later.
• The 10yr JGB was at 0.74% yesterday, while the 10yr swap is around 0.88%.
• Today we have the BoJ holding bond buying operations from 1 yr through to 25yr tenors.
• In a short while we also have weekly investment flow data. Then later on 3 month bill auction.