Futures Bid Overnight, Familiar Matters In The Press

JGB futures firmed alongside U.S. Tsys during the overnight session, with the contract adding 9 ticks to Tokyo settlement levels as a result.

• A reminder that late on Wednesday we saw a gov't panel propose a lifting of the average hourly minimum wage by (a record) Y28, with the country still fighting its well-documented inflationary headwinds. The Nikkei has noted that the % increase would be the largest witnessed since FY02. The move also comes after Prime Minister Suga's pledge to achieve an average hourly rate of at least Y1,000 "as soon as possible."
• Local press reports have pointed to the BoJ adopting a lower GDP outlook for the current FY come the end of its 2-day meeting (which runs across today & tomorrow), which isn't a surprise given the local COVID situation.
• Elsewhere, comments from economist Heizo Takenaka, an advisor to PM Suga, outlined the need for Y10-30tn of fresh fiscal support via a supplementary budget (the broader train of thought looks for Y20-30tn, with the declaration of such a package expected in the autumn, as part of a pre-election push)