Futures Lower Overnight, 10-Year JGB Supply Due

Weakness in U.S. Tsys helped drag JGB futures lower in post-Tokyo trade, with the contract finishing overnight dealing 8 ticks below Wednesday’s settlement level.

• Highlights from the local press since the Tokyo close include Yomiuri flagging the potential for a further lift of the number of tourists allowed to visit Japan from July, while the same outlet also suggested that the Japanese government will target lifting the country’s average minimum wage to Y1,000/hour.
• 10-Year JGB supply dominates the local docket today. Elsewhere, the BoJ will continue to offer to buy an unlimited amount of 10-Year JGBs via its fixed rate operation method, as it looks to enforce the upper boundary of its permitted -/+0.25% 10-Year JGB yield trading band. 10-Year JGB yields finished Wednesday trade around 0.24%, with the presence of the BoJ in the market set to limit any pre-auction concession and/or catch up to Tsy-related weakness.