Futures Nudge Higher Overnight, 5-Year Supply Due

JGB futures ultimately added 9 ticks in overnight dealing, finishing just below the midpoint of their post-Tokyo range, with the contract moving back from best levels alongside the cheapening observed in U.S. Tsys, after leaning on a bid in core European FI in the early rounds of overnight dealing.

• A BBG interview with former BoJ board member Kataoka, a renowned dove, has drawn some interest, as he suggested that the Bank could start normalising policy as soon as the middle of next year.
• Elsewhere, Kyodo sources reiterated the idea that the Japanese government plans to launch a new nationwide travel incentive scheme, which could be unveiled as soon as this month.
• PPI data, the quarterly BSI survey and 5-Year JGB supply headline today’s domestic docket. Participants also have one eye on Tuesday’s U.S. CPI print.