5-Year Supply Eyed

JGB futures added 6 ticks in overnight trade, benefitting from the bid in U.S. Tsys.

• Local news reports have suggested that the government is planning to extend the state of emergency in play across 19 prefectures including Tokyo and Osaka, with the areas impacted expected to have restrictions in place through the end of September. The reports also suggested that there will be a loosening of restrictions in Miyagi and Okayama. Meanwhile, Kyodo's sources suggested that the government wants to relax CVOID-related curbs across the country around November time. Elsewhere, the Nikkei suggested that the government is looking into shortening the self-isolation period for vaccinated foreign visitors to 10 days from the current 14.
• On the political front, former Internal Affairs Minister Takaichi formally announced her bid to become the next leader of the ruling LDP Party, as she pledged to prioritise reaching the 2% inflation target over achieving a primary budget balance if voted into power.
• Preliminary August machine tool orders data headlines the local economic docket on Thursday, while 5-Year JGB supply is also due.