Futures Weaker Overnight, US Tsy Curve Twist-Steepens, Nvidia Results Disappoint

In post-Tokyo trade, JGB futures are weaker, -7 compared to settlement levels, after US tsys finished with a modest twist-flattening of the 2/10 curve ahead of Nvidia’s results after market close.

• Nvidia reported quarterly sales of $30b, exceeding expectations but slowing from previous rapid growth, leading to a 9% drop in after-hours trading. Despite doubling its sales and profits from a year ago, concerns arose about the sustainability of its AI-driven momentum. Nvidia's forecast of $32.5 billion in next-quarter revenue surpassed analyst predictions but disappointed some loftier analyst expectations, which seems like a miss for Nvidia.
• Atlanta Fed Pres. Bostick aftermarket said: that there is still a distance to go on inflation; the labour market is still quite strong by historical standards; but we cannot wait until inflation is 2% to move away from a restrictive stance.
• US data was limited overnight: MBA mortgage applications showed flat weekly growth, while the re-started Atlanta Fed Wage Tracker provided further evidence of gradually softening labour market conditions.
• There was little reaction to the $70b 5Y Note auction which went relatively smoothly, with a 0.3bp tail offset by strong peripheral statistics.
• Today, the local calendar will see weekly International Investment Flow data and the Consumer Confidence Index alongside 2-year supply.