Global Vol. Set To Impact Tokyo Open

JGB futures added 32 ticks in the final overnight session of last week, with continued worry re: the U.S. banking sector front and centre, alongside a softer than expected U.S. average hourly print in the monthly labour market report. The contract finished just shy of late post-Tokyo best levels after unwinding a chunk of the post-BoJ gap higher at one point in the European morning.

• To recap, the post-BoJ meeting press conference saw Kuroda deploy a slightly more conciliatory tone surrounding recent inflation developments, although he continued to underscore the idea that the Bank’s inflation target has not been met on a sustainable basis, while noting that the attainment of the BoJ’s inflation goal has moved a little closer. Kuroda also tipped his hat to a more probable chance of firmer wage growth. This came after the Bank left policy settings unchanged.
• We should note that there has been plenty of early vol. in wider core global FI markets this week, with the previously alluded to action from the Fed (creation of new funding operations to stem the risk of a run on deposit taking institutions) and joint statement from the Fed, Tsy & FDIC re: making SVD depositors whole seeing the initial bid in Tsys moderate (TY futures now operate around late levels seen on Friday).
• The quarterly BSI survey headlines the domestic docket today, although international matters will remain at the fore when it comes to market drivers.