JGBS: Little Changed After PPI Services & Gov Ueda Comments

In Tokyo morning trade, JGB futures are slightly weaker, -5 compared to settlement levels, after giving up an overnight uptick.

• The Feb Japan PPI services rose 3.0%y/y, against a 3.1% market forecast and 3.2% prior print from Jan (which was initially reported as a 3.1% rise). In m/m terms the services PPI was flat, while BBG notes the 3 month annualized paced slowed to 1.0% in Feb. This metric was at 4.8% in Dec last year.
• “Overseas trade policies and the impact on global price trends are among factors that have added to uncertainties for Japan’s economy, BoJ Governor Ueda says. The long-held belief that prices and wages won’t rise is starting to fade, Ueda says in a semi-annual report to parliament. Sees both upside and downside risks for prices, with the underlying price trend still below the bank’s 2% target.” (per BBG)
• Cash US tsys are ~2bps cheaper in today's Asia-Pac session after yesterday's modest gains. Wednesday's focus is on Durables/Cap Goods, Tsy 5Y Sale and Fed Speak from MN Fed Kashkari Fed and StL Fed Musalem.
• Cash JGBs are little changed across benchmarks. The benchmark 10-year yield is unchanged at 1.583% after reaching a fresh cycle high of 1.587%.
• Swap rates are little changed.