Futures Uptick Overnight, Lower Than Expected Earnings May Provide Support

In post-Tokyo trade, JGB futures have up ticked, closing +2 compared to settlement levels, after US tsys finished the NY session with a twist-steepening, pivoting at the 20-year. Yields were 4bps lower to 3bps higher. There was little selling pressure from another tight reading on jobless claims and a narrower trade deficit, though a dovish tone from the Fed's Daly provided some support.

• Initial Jobless Claims (207k vs. 210k est, 204k prior) and Continuing Claims (1.664M vs. 1.671M est, 1.670M prior) were slightly less than expected ahead of Non-Farm Payrolls data release later today. Bloomberg consensus expects +170k in September payrolls versus +187k prior. The unemployment rate is forecast to dip to 3.7% from 3.8% prior.
• Labour and Real Cash Earnings print +1.1% y/y and -2.5% y/y, respectively, versus estimates of +1.5% and -2.1% and priors +1.1% and -2.7%. Household Spending shows -2.5% y/y versus -3.9% y/y est and -5.0% prior. The weaker-than-expected earnings data may provide some support for JGBs in the early rounds of Tokyo trading.
• Today the local calendar also sees Leading and Coincident Indices.