Futures Holding Cheaper, June’s BoJ Summary Of Opinions On Monday

JJGB futures are weaker but above session cheaps, -18 compared to settlement levels.

• Outside of the previously outlined National CPI and Jibun Bank PMIs, there hasn't been much in the way of domestic drivers to flag.
• (MNI) The Bank of Japan's June Tankan survey will show little change among major business sentiment over the past three months, while small- and major firms' capital investment plans will remain solid, economists told MNI (see Main Wire).
• (MNI) BoJ officials will focus on branch-manager meetings on July 8 to gauge wage hikes at smaller firms and the impact of the weak yen on corporate price-setting behaviour. They are also focused on how inflation expectations held by businesses, which are rising, have evolved amid slowing price hikes and weak private consumption (see Main Wire).
• Cash US tsys are flat to 1bp cheaper in today’s Asia-Pac session after yesterday’s modest sell-off.
• The cash JGB curve has bear-steepened, with yields flat to 2bps higher. The benchmark 10-year yield is 1.8bps higher at 0.975% versus the cycle high of 1.101%.
• Swaps are mostly modestly cheaper across the curve, with rates flat to 1bp higher. Swap spreads are mostly tighter.
• The local calendar will see BoJ's Summary of Opinions (June MPM) and Department Store Sales on Monday.