Futures Weaker, BoJ Governor Weekend Comments in Focus, Light Local Calendar

In post-Tokyo trade, JGB futures are weaker, closing -14 compared to settlement levels, after US tsys finished 4bps cheaper to flat across the major benchmarks. The curve flattened. US tsys were pressured on Friday, albeit in narrow ranges, the move lower came after a stronger-than-forecast Wholesale Trade Sales figure. The Atlanta Fed GDP Now Tracker for Q3 was unrevised at 5.6%, rising from 2.1% in Q2.

• The Fed is now in its policy blackout period ahead of the FOMC meeting next week. FOMC dated OIS was stable pricing a terminal rate of 5.45% in November with ~50bps of cuts by July 2024.
• BoJ Governor Kazuo Ueda said it’s possible the central bank will have enough information and data by the year-end to judge if wages will continue to rise, a condition for adjusting stimulus, according to an interview with the Yomiuri newspaper. Ueda said the central bank is still some distance away from achieving its price stability target and would continue its patient monetary easing. If the BOJ becomes confident prices and wages will keep going up sustainably, ending its negative interest rate is among the options available, Ueda said in the interview published Saturday. (See link)
• Today the local calendar is light, with M2 & M3 Money Stocks as the only releases.