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Futures Uptick In Trade Ahead Of Weekend, BoJ Summary Of Opinions Due

JGBS

In post-Tokyo trade ahead of the weekend, JGB futures uptick, closing +2 compared to settlement levels, after US tsys finished ~5bps richer across the major benchmarks. Tsys firmed on Friday after spillover from EGBs in lieu of weaker-than-expected European PMIs. Gains extended as US Mfg PMI printed at its lowest level of 2023 and weaker than forecast.

  • Fedspeak from Atlanta Fed President Bostic weighed as he noted he is not seeing elements of risk appearing in the economy. SF Fed President Daly said 50bp of further tightening is a reasonable projection, but no decision has been made yet.
  • The local calendar sees PPI Services (May) and BoJ Summary Of Opinions (June MPM) released today. The weekly highlight is however likely to be the release of Tokyo CPI on Friday.
  • The MoF plans to sell 20-year (Tue) and 2-year (Thu) JGBs this week.

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