Futures Holding Weaker At Lunch, Results Of BoJ Rinban Due

At the Tokyo lunch break, JGB futures are weaker, -11 compared to the settlement levels, but above session lows.

• (Bloomberg) BoJ board members discussed the case for an interest rate hike as upside risks to inflation become “more noticeable,” according to a summary of opinions from the June policy meeting. “It is necessary for the bank to continue to closely monitor relevant data in preparation for the next monetary policy meeting,” one of nine board members said, according to the summary released Monday in Tokyo. “If deemed appropriate, the bank should raise the policy interest rate before it’s too late.” (See link)
• Cash US tsys are ~1bp richer in today’s Asia-Pac session after finishing last week with a directionless session.
• Cash JGBs are 1-3bps cheaper across benchmarks. The benchmark 10-year yield is 2.2bps higher at 0.997% versus the cycle high of 1.101%.
• The results of today’s BoJ Rinban Operations for 1-10-year JGBs are due.
• The swaps curve has bear-steepened, with rates flat to 3bps higher. Swap spreads are tighter.