Futures Up Ticked Overnight, July CPI Prints In Line

In post-Tokyo trade, JGB futures have up ticked, closing +3 compared to settlement levels, after US tsys finished 4bp richer to 4bp cheaper across the major benchmarks. The curve twist flattened pivoting on 5s. US tsys were pressured after the latest round of US data, weekly jobless claims were in line with estimates and the Philadelphia Fed Business Outlook printed much higher than expected.

• The US 10-year rate traded as high as 4.325% overnight, edging within a single basis point of the 2022 high. Meanwhile, the 30-year rate climbed to 4.42%, surpassing the peak from the previous year and attaining its highest level since 2011. The 2-year rate has maintained its position just below 5%.
• July National CPI printed a headline rate of 3.3% y/y in line with expectations and the prior print. The core measures printed 3.1% y/y and 4.3% y/y for ex-fresh food (3.1% est. and 3.3% prior) and ex-fresh food and energy food (4.3% est. and 4.2% prior) respectively.