Futures Unwind Monday’s Losses, BoJ Nominee Speak Headlines Again

JGB futures stabilised overnight, with the modest richening observed in U.S. Tsys (after an initial round of pre- to early NY cheapening) providing support. That allowed the contract to chew away at the losses observed during Monday’s Tokyo session, leaving it +15 at the close of overnight trade, which equated to best levels of the session.

• Comments from outgoing BoJ Deputy Governor Wakatabe pointed to the cost-push driven nature of the current inflationary burst, alongside the lack of attainment of the BoJ’s inflation goal. The noted dove’s comments will not provide much impetus for markets at the Tokyo re-open.
• The upper house confirmation hearings of the government’s nominees for the BoJ Deputy Governor positions (Uchida & Himino) will take place today, while retail sales, industrial production and 2-Year JGB supply provide the highlights on the local docket.