[MARKET ANALYSIS] JGBs outperform as Katayama encourages pension funds to increase domestic investment

Newsquawk Staff · 10 Jul 2026, 02:10 UTC

UST Futures are quiet, trading in a tight 5-tick range, following a rebound in Thursday’s session as energy prices fell. A quiet docket ahead in the US coming into the weekend.
Bund Futures trade at the top end of its 125.37-125.61 range. Bunds were unreactive following the ECB minutes, in which it stated that policymakers see core inflation above the 2% target across the entire projection horizon, despite the policy tightening. This signals a hawkish tilt and keeps further rate hikes on the table. Markets fully price in a rate hike in 2026 and a 60% chance of two hikes by year-end.
JGB Futures are trending higher, dipping to a trough of 126.50 early in the session before reversing and at session highs of 127.46, as of writing. The reversal came amid comments by Japanese officials. Economy Minister Kiuchi didn’t say anything that clearly drove JGBs, however FinMin Katayama highlighted BoJ independence and stated that they are going to prompt investment by Japanese assets by the GPIF and others.

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US Market Open, 23 Oct, 10:15 UTC · what it led with

US President Trump says the US crushed Iran, and may want to do it a "little more".
Crude benchmarks firmer on ongoing tensions in the Middle East; recent bout of strength comes after the Houthis launched another missile towards Saudi interests.

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Fed’s Waller (voter) says more rate hikes are likely needed to tame inflation, but there is flexibility over the pace and hikes do not need to be consecutive.
DXY+0.1%
Japan's GPIF didn't discuss allocation at its September meeting, Bloomberg reports.
USD/JPY+0.1%
Japanese FX Official Mimura says they are closely watching to see if markets take the clear message they are giving at face value. Not satisfied with or reassured by recent JPY action.
USD/JPY−0.5%

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