Futures Dips Supported

In post-Tokyo trade, JGB futures finished at 148.23, +.14. Dips back towards the 148.10 region were generally supported. We didn't breach early session highs from yesterday though, which printed at 148.26. Some support was likely from US cash Tsys, which finished 2bps richer to flat across the major benchmarks.

• Upcoming today we have the Q2 BSI survey. There is no consensus for the print, with the prior all industry outcome at -3.0, while for manufacturing it was -10.5.
• Expectations remain low for any major shifts at this Friday's BoJ meeting. 10yr cash bond yields edging up slightly yesterday, but remain well within recent ranges. The 10yr swap rate also finished above earlier lows, but is similarly range bound (last 0.585%).
• Locally, Japan PM Kishida's approval rating slipped 3ppts to 43% according to NHK. Survey respondents also weren't in favor of an early election before year end.
• Elsewhere the government is reportedly considering delaying a tax increase to fund extra defense spending to 2025.
• Finally, Japan will hold an enhanced liquidity auction for 15.5-39yr, at 5pm local time (9am BST).