Futures Weaker In Overnight Dealings, US 10Y Yield Hits Fresh Cycle High

In post-Tokyo trade, JGB futures are weaker, closing -22 compared to settlement levels, after US tsys finished 5-14bps cheaper across major benchmarks, with a steepening of the curve. Higher-than-expected JOLTS data drove the move, with the 10-year yield reaching a fresh cycle high of 4.8081%.

• US job openings unexpectedly rose sharply by 690k in August to 9.6m, breaking a run of declines. However, the quits rate was unchanged at 2.3%, matching the lowest level since 2020.
• Fed Mester did little to dissuade the tsy sell-off as she reiterated that a last quarter-point rate increase by December is likely needed and rates will stay restrictive "for some time" to get inflation back to goal by the end of 2025. In contrast, Fed Bostic struck a more cautionary view: “I am not in a hurry to raise, but I am not in a hurry to reduce either.”
• Comments have crossed the wires (BBG & RTRS) from Japan's top currency diplomat Kanda. He declined to confirm whether the authorities intervened in FX markets. This follows the sharp USD/JPY drop during Tuesday's NY trade, which came after the pair spiked above 150.00.
• Today the local calendar sees Jibun Bank PMIs (Final), along with BoJ Rinban operations covering 1- to 25-year JGBs.