Disagreements over policies regarding security and nuclear power appear to be the key obstacles to an agreement between opposition parties on backing a joint candidate for PM. After a meeting between the leaders of the liberal Constitutional Democratic Party (CDP), libertarian-federalist Japan Innovation Party (Ishin), and conservative populist Democratic Party for the People (DPFP), DPFP leader Yuichiro Tamaki said, "I told [CDP leader] Yoshihiko Noda that the security legislation cannot be recognised as not unconstitutional. Representative Noda said he would maintain the assertion that the security legislation has unconstitutional elements and would not reconsider zero nuclear power."
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OI data points to a mix of net long cover (TU, FV, UXY, US & WN) and short setting (TY) as Tsy yields pulled away from recent lows on Friday. Net long cover was comfortably more prominent in curve-wide terms.
| 12-Sep-25 | 11-Sep-25 | Daily OI Change | OI DV01 Equivalent Change ($) |
TU | 4,485,334 | 4,494,228 | -8,894 | -360,593 |
FV | 6,819,380 | 6,841,853 | -22,473 | -999,406 |
TY | 5,372,837 | 5,367,855 | +4,982 | +341,293 |
UXY | 2,365,713 | 2,372,134 | -6,421 | -586,746 |
US | 1,807,094 | 1,818,959 | -11,865 | -1,697,898 |
WN | 2,011,771 | 2,016,360 | -4,589 | -864,949 |
|
| Total | -49,260 | -4,168,298 |
The latest CFTC CoT report showed asset managers building on their net long position in the week ending September 9, with net long setting in FV, TY, US & WN futures comfortably outweighing net long cover in TU & UXY futures. The cohort added a net ~$8.6mln DV01 of risk across the curve and remains net long all contracts.

Source: MNI - Market News/CFTC/Bloomberg Finance L.P.