A Cheaper Bias

JGB futures drifted lower during the morning session, with participants looking to Thursday's cheapening in U.S. Tsys & the proximity to next Tuesday's 30-Year JGB supply. The contract last prints 7 ticks below settlement levels, with the major cash JGB benchmarks running little changed to ~1.0bp cheaper on the day (10s and 20s were the flat prints).

• The latest round of domestic household spending data was firmer than expected, but there has been little in the way of notable headline flow to trade off.
• On the fiscal front, reports suggested that the Japanese government will say the country must "aim to" achieve its fiscal target bearing, with the country's fiscal state in dire straits, based on a draft of a fiscal blueprint obtained by local media outlets. The draft apparently noted that the country must lay the foundations for fiscal restoration before baby boomers reach 75.
• Monday's local docket is sparse.