JGB futures surged overnight, reversing the....>

JGBS: JGB futures surged overnight, reversing the declines that were seen in

Tokyo hours, and more, as the latest escalation in the U.S.-China trade war

leant support to core global FI markets.

- As a reminder, JGBs struggled alongside Tsys on Thursday, with an uninspiring

10-Year JGB auction applying some fresh pressure in the Tokyo afternoon. BoJ

Deputy Governor Amamiya largely regurgitated old comments, but did note that the

BoJ isn't running out of easing tools. He also noted that markets need to

understand the Bank's policy stance and economic assessment, as opposed to

expecting that the BoJ will provide an outright signal of future MonPol action.

- Focus today turns to 10-25+ Year Rinban operations from the BoJ and the

minutes from the BoJ's June meeting, which has of course been superceded by this

week's decision. The Japanese government may also make a decision re: the

escalation of South Korean trade matters (via "white list exclusion") in today's

cabinet meeting.