JGBS: Futures Lower Overnight, US Tsys Cheaper Ahead Of Today’s Calendar

In post-Tokyo trade, JGB futures are weaker, -11 compared to settlement levels, after the US tsy curve bear-steepened ahead of today’s flood of data and Fed speakers. 

• Today’s US calendar will see Weekly Claims, GDP, PCE, Cap Goods, Durables, and Pending Home Sales data alongside a flurry of Fed speakers: Barr, Cook, Kashkari, Williams and Chairman Powell.
• The US 2-year yield rose 2bps to 3.56% with the 10-year 6bps higher at 3.78%.
• The US$70bn 5-year auction cleared at prevailing market levels. The market has a further US$44bn of 7-year notes to digest tomorrow.
• There was little reaction to new home sales - slightly better than expected in August at 716k (saar, cons 700k) after an upward revised 751k (initial 739k) in July.
• Gold edged up fractionally to $2657.28 on increasing geopolitical risks. Oil prices fell -2.6% to $69.69 per barrel as some of the euphoria after the stimulus from China faded and supply concerns ebbed marginally.
• Today, the local calendar will see BoJ Minutes of the July Meeting alongside 40-year supply. Machine Tool Orders data is also due.