Futures Lead Weakness

Futures drove the extension of the aforementioned weakness as we moved through the Tokyo morning, with the contract hitting the lunch bell -20, aided by an uptick in local equities. 7s led the weakness on the cash curve as a result, cheapening by ~2bp on the day. Light futures roll activity has been observed and has been 2-way in nature. Comments from Japanese Finance Minister Suzuki didn’t reveal much in the way of fresh, meaningful information, pointing to the need to maintain the FY25 balanced primary balance goal, while noting that the government’s annual tax proposals are in the final stages of preparation. 30-Year JGB supply headlines this afternoon.