Futures Weaker Overnight, Tokyo CPI Prints Broadly In Line

In post-Tokyo trade, JGB futures are weaker, closing -11 compared to settlement levels.

• Tokyo CPI printed broadly in line with expectations at 2.6% y/y in February versus 2.5% est. and a revised 1.8% prior. Core and Core-Core measures printed in line at 2.5% y/y and 3.1% y/y respectively versus revised priors of 1.8% and 3.3%.
• Japanese PM Kishida will hold talks over wage increases among the government, the business community, and labor representatives on March 13, NHK reports without attribution.
• The local calendar today also sees 10-year supply and a speech from BoJ Governor Ueda at FIN/SUM 2024.
• Overnight US tsys pared of Friday's rally amid cautious trade ahead of Fed Chairman Powell's Humphrey Hawkins testimony to Congress Wed-Thu and the Payrolls Report Friday.
• Powell is expected to stress a ‘wait-and-see’ stance and concerns regarding easing prematurely.
• Comments from Fed voter Bostic and another heavy corporate issuance calendar also weighed on US tsys.
• Fed Bostic said his base case remains for two rate cuts this year, likely starting in the third quarter, and does not anticipate reductions at back-to-back meetings, adding he would like quantitative tightening to continue at the current pace for as long as possible.
• Tuesday’s US data calendar includes S&P Final PMIs, ISM Services and Factory Orders.