Little Changed, BoJ Gov. Ueda In Parliament Soon, 30Y Supply Tomorrow

In afternoon dealings, JGB futures have pushed back into negative territory, -11 compared to settlement levels, after almost paring overnight weakness back to flat by lunch following weaker-than-expected wages and household spending data for December.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined Labour Cash & Real Earnings and Household spending data.
• BoJ Governor Ueda is scheduled to appear in Parliament from 1.41 pm JT - BBG
• (MNI) Market participants will focus on Bank of Japan Deputy Governor Shinichi Uchida's presentation to business leaders Thursday for any shift in tone that could quell expectations of a March policy shift. Policymakers' positive views on the removal of negative rates, published in the recent January meeting opinions, have fuelled speculation the Bank could adjust policy in March. (See link)
• Cash JGBs are dealing slightly mixed across the curve, with yields -0.3bp lower (5-year) to 1.5bp higher (30-year). The benchmark 10-year yield is 0.6bp higher at 0.731% versus the Nov-Dec rally low of 0.555%.
• Swap rates are lower across the curve, with rates 0.6bp to 1.4bps lower (10-year). Swap spreads are tighter across maturities.
• Tomorrow, the local calendar will release Leading and Coincident Indices for December (Preliminary), along with 30-year supply.