Futures Flat Overnight, Rinban Due

The impulse from U.S. Tsys may pressure JGBs in early Tokyo trade.

• This comes after a relatively resolute overnight session for futures, which finished after-hours dealing at unchanged levels.
• On the fiscal front Nikkei source reports have suggested that the Japanese government will tap another ~Y1.4tn in reserves that it earmarked in the FY21 budget for its COVID response (approval of the spending may come as soon as Friday). Elsewhere, there is the potential for another widening of the area covered by the country's COVID state of emergency.
• BoJ Rinban operations covering 1- to 3-, 5- to 10- and 25+-Year paper headlines the local docket today. A reminder that Thursday will see the latest round of 20-Year JGB supply. We will also hear from BoJ board member Nakamura.