JGB Futures Firm Overnight; Q2 Final GDP Due

JGB futures followed core global FI markets higher on Wednesday amidst global growth worry, with the contract going out 14 ticks firmer, extending a move away from that session’s eight-week lows.

• Domestic headlines of note have been light thus far, with focus turning to a spread of domestic data due in ~25 minutes - Q2 final GDP, BoP, bank lending, and weekly international security flow figures, with a 6-Month Bill auction and a liquidity enhancement auction for off-the-run 5-15.5 Year JGBs due further into the session.
• Participants will also be on the lookout for the latest round of rhetoric/action from Japanese officials following recent JPY weakness, with the BoJ having boosted its scheduled bond purchases on Wednesday (for JGBs with 5- to 10-Years until maturity) as 10-Year JGB yields have continued their approach to the 0.25% upper limit of the BoJ’s permissible trading band.