US-JAPAN: Trump-Ishiba Joint Press Conference Underway Shortly

Feb-07 18:11

US President Donald Trump and Japanese Prime Minister Shigeru Ishiba are shortly due to hold a joint press conference at the White House, following a bilateral meeting. The presser could be the source of major headline news - related and unrelated to today's discussions. LIVESTREAM

  • The bilateral meeting is likely to have focused on economic issues, Trump’s concerns about Japan’s defence spending, and joint action to counter China in the Indo-Pacific.
  • Senator Bill Haggarty (R-TN),  ambassador to Japan during the first Trump administration, said Ishiba is likely to seek alignment with Trump “on national security, defense and ways to bring that closer together,” particularly in light of “joint Chinese-Russian naval patrols off Japan’s coast in September and China’s increasingly aggressive incursions around the disputed Senkaku islands,” according to Politico’s China Watcher.
  • Yuki Tatsumi, former special assistant for political affairs at the Japanese embassy in Washington, said: “For Ishiba, this is a very high-stakes meeting. He wants to show to Japanese constituents that he's a strong and confident enough leader to be able to build, if not a personally friendly relationship with Trump, at least a positive [one].”
  • The Japan Times reported Tuesday, “Ishiba is likely to announce a plan to expand Japan's imports of liquefied natural gas from the United States, in line with Trump's plan to increase exports of U.S. oil and natural gas.”

Historical bullets

US TSYS/SUPPLY: Review: 30Y Bond Re-Open: Small Stop

Jan-08 18:04

Treasury futures climbing higher, USH5 currently 112-07 (+2) after the $22B 30Y auction reopen (912810UE6) stops .7bp through: 4.913% high yield vs. 4.920% WI; 2.52x bid-to-cover vs. 2.39x in the prior month.

  • Peripheral measures has indirect take-up 66.63% vs. 66.53% prior; direct bidder take-up 20.71% vs. 19.10% prior; primary dealer take-up 12.66% vs. 14.37% prior.
  • The next 30Y auction is tentatively scheduled for February 13.

FED: US TSY 29Y-10M BOND AUCTION: HIGH YLD 4.913%; ALLOT 67.56%

Jan-08 18:02
  • US TSY 29Y-10M BOND AUCTION: HIGH YLD 4.913%; ALLOT 67.56%
  • US TSY 29Y-10M BOND AUCTION: DEALERS TAKE 12.66% OF COMPETITIVES
  • US TSY 29Y-10M BOND AUCTION: DIRECTS TAKE 20.71% OF COMPETITIVES
  • US TSY 29Y-10M BOND AUCTION: INDIRECTS TAKE 66.63% OF COMPETITIVES
  • US TSY 29Y-10M BOND AUCTION: BID/COV 2.52

US TSYS/SUPPLY: WI 30Y Re-Open

Jan-08 17:57
  • WI has receded to 4.922% from 4.939% earlier heading into the $22B 30Y auction re-open (912810UE6) cutoff at 1300ET, 38.7bp cheap to last month's tail: 4.535% high yield vs. 4.523% WI.
  • Treasury futures still weaker but off session lows (TYH5 -.5 at 108-05), curves steeper: 2s10s +1.047 at 40.019, 5s30s +0.599 at 45.227.