Futures Holding Weaker, PPI Services & 20Y Supply Tomorrow

JGB futures are weaker, -9 compared to the settlement levels, but well above session lows.

• (MNI) BoJ board members were divided on the timing of rate hike at the June 13-14 policy-setting meeting, the summary of opinions showed on Monday. Some board members saw the need to consider raising the policy interest rate appropriately. Another member noted, that although price developments were on track to achieve the 2% price-stability target in the second half of fiscal 2025, "upside risks to prices have become more noticeable.” (See link)
• (MNI BoJ Watch) The BoJ wants to establish a broad framework that will make buying and selling JGBs easier, as the bank contemplates how it will execute a reduction to its purchases should the Board direct it to do so at July's meeting, MNI understands. (See link)
• Cash US tsys are flat to 1bp richer in today’s Asia-Pac session.
• Cash JGBs are flat to 4bps cheaper across benchmarks. The benchmark 10-year yield is 2.0bps higher at 0.995% versus the cycle high of 1.101%.
• The swaps curve has bear-steepened, with rates flat to 4bps higher. Swap spreads are tighter.
• Tomorrow, the local calendar will see PPI Services, Leading & Coincident Indices and Machine Tool Orders data alongside 20-year supply.