Futures Uptick In Early Tokyo Trade, Jobless Rate Slightly Lower Than Expected

JGB futures reverse the overnight downtick, +5 compared to settlement levels after the post-BoJ decision sell-off extended yesterday. Yesterday's weakness came despite the BoJ announcing an unscheduled Y300bn bond-purchase operation at market yields to dampen rates after adjusting YCC policy on Friday to allow benchmark yields to climb as high as 1%. It was the first time since February that the BOJ has waded into the market this way, suggesting that it will continue to smooth any sharp upward moves.

• US tsys finished the NY session little changed across benchmarks. In a mostly data-light session, US tsys observed narrow ranges. Gains were pared as the US Tsy announced larger than expected Q3 Issuance of $1.007tn in privately held marketable debt.
• A Bloomberg survey conducted yesterday showed the majority of economists (91%) don't expect any major policy shifts for the remainder of 2023 (See link).
• On the data front today we have the June Jobless Rate and Job-To-Applicant Ratio, no change is expected in the jobless rate. The final July PMI print is also due.
• Today the MoF plans to sell Y2.7tn of 10-year JGBs.