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Rinban & Macro Input Eyed

JGBS

JGB futures shed 14 ticks in the final overnight session of last week, extending on the softness seen in the Tokyo session, which was induced by the firmer than expected Tokyo CPI data that we saw ahead of Friday’s JGB open (smooth digestion of 40-Year GB supply provided some cushion in the Tokyo afternoon).

  • The COVID-related unrest in China flagged elsewhere may provide some light support for JGBs early today.
  • Weekend headline flow saw BoJ Deputy Governor Amamiya address climate financing matters, which shouldn’t be a market mover.
  • Elsewhere, domestic weekend news flow saw PM Kishida’s approval rating continue to crater in a couple of major opinions polls, while the Yomiuri reported that the Japanese government is set to draft a five-year defence spending plan that will total more than Y40tn.
  • The latest round of BoJ Rinban operations headline the domestic docket today, with the operations covering 3- to 25+-Year JGBS.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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