Defensive Overnight

JGB futures shed 9 ticks overnight, with U.S. Tsys also trading on the defensive, although the contract finished off of worst levels, much like its U.S. counterparts.

• The Nikkei reported that Japanese PM Abe will make an address on Friday. Abe is expected to address his well-documented health issues.
• Late Tuesday saw ratings agency Fitch note that Japan's single-A rating would be negatively impacted if the country reverses the recent consumption tax hike, with the country's debt outlook now leaning toward negative.
• Elsewhere, local reports have suggested that the government will extend its employment subsidy scheme through year end.
• Services PPI & 1-10 Year BoJ Rinban ops headline locally on Wednesday.