Long End Bid, Futures Give Back Early Uptick

Some catch up in JGBs to the post-U.S. CPI gyrations sees the major benchmarks run little changed to 3bp richer, with the 20-30-Year zone outperforming on the curve. Futures initially showed higher, but have eased back to late overnight session levels, last +13.

• The latest BoJ Tankan survey revealed a roughly in line with expected round of figures covering large businesses, while small business readings were a touch firmer than expected. Meanwhile, capex intentions saw a larger than expected downtick, while corporate inflation expectations didn’t see anything in the way of meaningful adjustments (0.1ppt higher for both 1- & 3-Year expectations).
• Ahead, the previously flagged BoJ Rinban operations headline the domestic docket.