Marginally Richer, BoJ Matters Dominate

TYM3 deals at 114-26+, +0-03, with a 0-11+ range observed on volume of ~133k.

• Cash tsys sit ~1bp richer across the major benchmarks.
• After a muted start tsys were briefly pressured after Nikkei reports surfaced noting the potential for policy change at today's meeting, however losses were pared as further headlines clarified that the change was in relation to the governments covid classification. TYM3 showed below Thursdays lows.
• Spillover from JGBs, as the BoJ left policy setting unchanged and announced a review of monetary policy which will take 1-1.5 years, saw tsys firm.
• FOMC dated OIS price ~22bp hike for next week's meeting with a terminal rate of 5.1% in June. There are ~60bps of cuts priced in 2023.
• In Europe today we have Eurozone, French and German GDP and Regional and National German CPI. Further out we have a slew of US data including PCE Deflator, MNI Chicago PMI and UofMich Consumer Sentiment.