Familiar Matters Dominate Local Headlines

JGB futures shed 7 ticks in overnight trade, finishing just off worst levels of after-hours dealing.

• In terms of local news, local press outlets continue to speculate that PM Suga is mulling calling a snap election in September (with the potential for further fiscal stimulus and therefore debt issuance tied in). On the COVID front, the Nikkei reported that Japanese officials are set to discuss the easing of event capacity, while sperate reports have suggested that the country's top medical advisor and the Economy Minister are set to hold a press conference today (time to be confirmed).
• The monthly trade balance reading and core machine orders print headline the local economic docket on Wednesday. Those releases will be supplemented by the latest round of BoJ Rinban operations, which will cover 1- to 10-Year paper.