Leaning On Tsys For Support

JGB futures added 12 ticks during the overnight trading session, as bulls unwound another portion of the weakness that was linked to the BoJ's April Rinban tweaks, benefitting from the firming witnessed in the U.S. Tsy space.

• BoJ board member Noguchi expressed support for the broader brushstrokes of the Bank's policy in his inaugural address, although he did flag that he had been critical of the Bank's monetary policy in the past and wanted to refrain from making fresh suggestions for now, welcoming the recent tweaks that came on the back of the BoJ's monetary policy review. As we flagged yesterday, Noguchi is a known reflationist. He tipped his hat to the need to support the labour market and generate inflation, flagging the need to have contingency plans in place in case further easing is required.
• There is nothing in the way of material local risk events scheduled for Friday's session, with the broader lack of liquidity having the potential to impact the space.