Overnight Gains In Futures Seen Ahead Of the Weekend Are Pared In Early Tokyo Trade

In Tokyo morning trade, JGB futures have pared overnight gains seen ahead of the weekend, +5 compared to settlement levels.

• Today the local calendar is light, with Dept Sales as the only data later. However, BOJ’s Governor Ueda will give a speech in Osaka at about 2:30 pm local time, and Uchida will speak around an hour later.
• Bloomberg reports that Japan’s government is more likely to intervene to support the yen given that the BOJ hardly offered anything new at its policy meeting Friday and US Treasury yields have climbed, writes Jonas Goltermann, the deputy chief markets economist at Capital Economics. (See link)
• Cash US tsys are dealing flat to 2bps cheaper across major benchmarks so far in Asia-Pac trade.
• Cash JGBs are mixed, with yields 0.2bp lower (10-year) to 1.1bp higher (30-year). The benchmark 10-year yield is at 0.744% versus the cycle high of 0.756% set ahead of the BOJ policy decision on Friday.
• Swap rates are higher across the curve, with swap spreads wider.