Futures A Touch Lower Overnight, 10-Year Supply Due

JGB futures ultimately shed 4 ticks in overnight dealing, tracking gyrations in the longer end of the U.S Tsy curve, recovering from a brief and limited showing below Monday’s Tokyo low into the close.

• FI-relevant domestic headline flow has been rather limited since Monday’s close, which will leave Tokyo’s reaction to the cheapening in wider core global FI markets on Monday and set up for today’s 10-Year JGB supply at the fore during early Tuesday trade.
• Data from Japan's MoF confirmed that the Japanese authorities intervened in currency markets last month to the tune of Y6.3tn, setting a new record. Officials have repeatedly refused to clarify if they took action and signalled that stealth interventions were an option.
• The aforementioned round of 10-Year JGB supply headlines the domestic docket today (there will be more on that in our preview which will cross later). Elsewhere, final manufacturing PMI data is due, but that shouldn’t move the market.