Futures Holding Stronger At Lunch

At the Tokyo lunch break, JGB futures are stronger, +4 compared to the settlement levels.

• (Reuters) Japan's parliament plans to hold a special session on Aug. 23 to discuss the central bank's decision last month to raise interest rates. The special session, to be conducted by the lower house financial affairs committee, is likely to ask Bank of Japan Governor Kazuo Ueda to attend, said the sources, who declined to be identified.
• Outside of the previously outlined PPI data, there hasn't been much in the way of domestic drivers to flag. Machine Tool Orders data (prelim) is due later today.
• Cash US tsys are flat to 1bp richer in today’s Asia-Pac session after being slightly cheaper early. Tuesday’s focus in the US will be on US PPI data and Richmond Fed Bostic. PPI data will be scrutinised for categories that feed through to the Fed’s preferred inflation gauge, the personal consumption expenditures price index.
• The cash JGB curve continues to hold a slight bear-flattening, with yields 2-3bps higher. The benchmark 10-year yield is 1.3bps higher at 0.866%.
• Swaps are little changed to the 10-year zone, and 1-6bps higher beyond. Swap spreads are tighter out to the 20-year.