Watch The Open

JGB futures followed U.S. Tsys higher in overnight trade, adding 12 ticks, but may be subjected to volatility around the Tokyo open given the pullback in Tsys during late NY trade.

• A reminder that our policy team have flagged their understanding that "the Bank of Japan sees no need to further reduce the scale of its JGB purchases at present, despite some market players seeing the bank scale back buys." Elsewhere, a BBG source piece has suggested that BoJ officials are "likely to discuss raising their economic outlook slightly in a quarterly report due later this month after signs conditions have improved more than earlier expected."
• There is little of note on the local docket on Friday.