JGBS: Futures Stronger Overnight, H/H Spending Weaker Than Expected

In post-Tokyo trade, JGB futures are stronger, +11 compared to settlement levels.

• Household Spending for July printed +0.1% y/y versus +1.2% estimate and -1.4% y/y prior.
• Overnight, US tsys US 2- and 10-year yields fell 1bp and 3bps respectively. The closely watched 2s10s curve set a fresh 2-year high (1.532bps) intraday.
• ADP reported private US employers added 99k jobs in August. This is the lowest number in more than three years and further signified a cooling labour market.
• The ISM services index was little changed and in line with consensus at 51.5.
• September Fed rate cut pricing again neared 50/50 for 50bp in Fed Funds futures, before fading to 40/60.
• Today’s US calendar will be dominated by payrolls (our preview is here). After that, we will hear from the FOMC's Williams, Goolsbee and Waller ahead of pre-September meeting blackout starting this weekend.
• (Bloomberg) "Mitsubishi UFJ Financial Group Inc. will consider shifting more of its $488 billion securities portfolio into Japanese government bonds when yields reach 1.2%, as it expects the central bank to continue raising interest rates." (See link)
• Today, the local calendar will also see Coincident & Leading Indices data alongside BoJ Rinban Operations covering 5-25-year+ JGBs.