Tight Overnight, Amamiya Stresses Need For Continued Easing & Capability To Deal With Exit

JGB futures clung to a narrow range overnight, shedding 3 ticks during post-Tokyo trade, with price action and activity limited by the public holiday in the U.S.

• Late on Monday we saw soon-to-be departing BoJ Deputy Governor Amamiya stress that the BoJ must persist with monetary easing, while highlighting difficulties when judging the timing of the move away from the Bank’s ultra-loose settings (including communicating the idea effectively to the market). Still, he tried to reassure participants, flagging ways to address those challenges, while highlighting a lot of work to be done before his term ends (19 March).
• There hasn’t been much in the way of meaningful news flow, outside of those comments, for participants to digest in the time since the Tokyo close.
• 20-Year JGB supply headlines the local docket on Tuesday, with flash PMIs from Jibun Bank also due.