Futures Higher, No Major Changes Expected From The BoJ This week

In post-Tokyo trade, JGB futures finished at 148.08, +.07. We got to 148.16 late in Asia Pac trade as Bloomberg reported BoJ officials saw little need to change YCC settings at this week's policy meeting (see this link ICYMI). We closed below these highs as US yields remained on the front foot heading into the weekend (US 2yr back close to 4.60%, 10yr near 3.74%).

• Upcoming shorter term US issuance aided front end US yields, with some respite coming after weaker Canadian jobs data, but the impact was limited.
• Today in Japan we have May PPI data, which is unlikely to move market sentiment. The market expects a -0.2% m/m outcome (prior +0.2%), which would take the y/y pace to 5.6% (from 5.8%). Later on, preliminary May machine tool orders data is due, there is no forecast, the prior read was -14.4%.
• There continues to be speculation that a general election could be called soon, with a no confidence motion reportedly being considered by the opposition a potential trigger (see this link for more details).