Futures Off Overnight Highs, BoJ Rinban Plan Due After Hours

Monday's bid in U.S. Tsys meant that the major cash JGB benchmarks were generally flat to 1.0bp richer during Tokyo dealing, with 7s leading the bid, although futures faded from overnight levels to last deal +7 vs. yesterday's settlement, even as domestic equities came under some modest pressure.

• The latest round of local retail sales data was loosely in line with broader exp., while there was a 0.2 ppt uptick in the unemployment rate vs. 0.1 ppt exp.
• A decent enough round of 2-Year JGB supply was seen as the cover ratio nudged higher and low price topped dealer expectations (100.235 per the BBG dealer poll), although the tail did see an incremental widening vs. the previous round of 2-Year supply (it was still limited in nature).
• The BoJ will outline its July Rinban plan after hours today, with preliminary industrial production data headlining the local docket on Wednesday.