Futures Weaker With US Tsys, US CPI Revisions Later Today

In post-Tokyo trade, JGB futures are weaker, closing -21 compared to settlement levels. US tsys finished 3-5bps cheaper on Thursday following Initial Jobless Claims data of 218k (cons 220k) in the week to Feb 3 after last week’s surprise increase was revised a little higher to 227k (initial 224k).

• The Federal Reserve has time to wait before cutting interest rates as the economy remains strong even as inflation falls, Richmond Fed President Thomas Barkin said Thursday. “You don’t have to be in any particular hurry. We’ve got some time to be patient,” Barkin said in an interview with Bloomberg TV.
• The $25bn 30Y supply showed solid demand metrics, with the auction stopping through for the third time this week: 4.360% high yield vs. 4.380% WI. Decent to strong demand greeted supply all week, with all three coupon auctions stopping through, which hasn't occurred since January 2023. Post-30Y auction support, however, was unwound by the close.
• The market now awaits CPI revisions from the BLS early on Friday: BLS will update seasonal factors affecting CPI inflation through 2019-23.
• Today, the local calendar is light, with M2 & M3 Money Stock data as the highlights. The MoF plans to sell Y2.5tn of 5-year JGBs. BoJ Governor UEDA is scheduled to appear in Parliament from 10ː06 JT.