Futures Weaker Overnight, BoJ Gov. Ueda Tempers Hike Fears

In post-Tokyo trade, JGB futures are weaker, closing -5 compared to settlement levels.

• Today’s Jobless Rate and Job-To-Applicant Ratio data for january printed in line with expectations at 2.4% and 1.27 respectively.
• (Bloomberg) -- Bank of Japan Governor Kazuo Ueda said the Bank of Japan’s price target is not yet in sight, tempering market speculation that the bank’s first rate hike since 2007 is just around the corner. (See link)
• Overnight, US tsys finished the NY session 1-2bps richer. The US 10-year yield finished 1bp lower at 4.26% after pushing as high as 4.32% ahead of the PCE deflator data.
• The US PCE deflator, which is the Fed’s preferred inflation gauge, printed in line with market expectations, with the core measure up 0.4% m/m and 2.8% y/y. This confirmed the jump in inflation in January, as foreshadowed by prior CPI and PPI data.
• Initial Jobless Claims were higher than expected (215k vs. 210k est).
• Fed speak remained balanced while leaning toward cut(s) in 2H'24. Fed Bostic reiterated that the central bank is likely going to be in a position to begin easing interest rates sometime in the summer.
• Today, the local calendar also sees Jibun Bank PMI Mfg and Consumer Confidence data later.