MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

MNI BRIEF: China To Cut Rates, Boost Borrowing-Work Conference

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI: US NOV FINAL DEMAND PPI +0.4%, EX FOOD, ENERGY +0.2%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JGBS: Futures Sharply Lower on Friday After Surprise LDP Election Winner

JGBS
GlobalBulletAPACFixed Income BulletsJapanRegionMarkets

In post-Tokyo trade on Friday, JGB futures were sharply weaker, -54 compared to settlement levels, despite US tsys finishing the week on a stronger note.

  • The late Friday afternoon turnaround was dramatic, with JGB futures slumping after Ishiba’s victory in the LDP leadership run-off against Takaichi, a BoJ dove. The run-off result was a surprise, given Takaichi was seen as having a stronger chance of winning, given her popularity with lawmakers.
  • Focus will now be on Ishiba's policies, although the general sense is that policy continuity from outgoing PM Kishida will be maintained (and therefore gradual continued BoJ policy normalisation).
  • NHK has reported that Japan's general election will be held on October 27th, with LDP leader Shigeru Ishiba to dissolve the lower house on October 9th (per BBG/NHK).
  • On Friday, a benign US inflation, consumption, and PCE inflation report underpinned expectations for more rate cuts ahead, including the potential for another -50 bps in November.
  • The US 2-year yield closed 7bps lower at 3.56% with the US 10-year down 5bps to 3.75%. The curve steepened 2bps to 19bps.
  • Today, the local calendar will see Industrial Production (P), Retail Sales and Housing Starts data alongside 2-year supply.
192 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

In post-Tokyo trade on Friday, JGB futures were sharply weaker, -54 compared to settlement levels, despite US tsys finishing the week on a stronger note.

  • The late Friday afternoon turnaround was dramatic, with JGB futures slumping after Ishiba’s victory in the LDP leadership run-off against Takaichi, a BoJ dove. The run-off result was a surprise, given Takaichi was seen as having a stronger chance of winning, given her popularity with lawmakers.
  • Focus will now be on Ishiba's policies, although the general sense is that policy continuity from outgoing PM Kishida will be maintained (and therefore gradual continued BoJ policy normalisation).
  • NHK has reported that Japan's general election will be held on October 27th, with LDP leader Shigeru Ishiba to dissolve the lower house on October 9th (per BBG/NHK).
  • On Friday, a benign US inflation, consumption, and PCE inflation report underpinned expectations for more rate cuts ahead, including the potential for another -50 bps in November.
  • The US 2-year yield closed 7bps lower at 3.56% with the US 10-year down 5bps to 3.75%. The curve steepened 2bps to 19bps.
  • Today, the local calendar will see Industrial Production (P), Retail Sales and Housing Starts data alongside 2-year supply.