[MARKET ANALYSIS] Cooler Tokyo CPI fails to support JGBs

UST Futures trades at the lower end of a 110-17+ to 110-22+ range, primarily driven by the downside in JGBs. ISM Manufacturing PMI is expected later, with the headline figure expected at 53.1 (prev. 52.7). Bund Futures are closed due to Labour Day holiday.  JGB Futures has started the Asia-Pac session on the backfoot, reversing the majority of Thursday’s pre-cash gains. The cooler-than-expected Toyko CPI has failed to provide support for Japanese debt, with 10yr JGBs trading just shy of the 129.30 session low.