Futures Off Overnight Highs, Cash Little Changed To A Touch Firmer

JGB futures have eased back from their overnight highs, aided by some light cheapening in the U.S. Tsy space, although Tokyo morning trade was relatively limited, with the contract hitting the bell 8 ticks above settlement levels. Cash JGB trade sees the major benchmarks running little changed to a touch over 1.0 bp richer vs. Friday's close. 7s provide the strongest point on the curve, pointing to a futures-driven round of outperformance, while the long end lags, perhaps on carry over worry re: JGB issuance to facilitate the well-documented round of incoming fiscal stimulus. A liquidity enhancement auction covering off the run 1- to 5-Year JGBs is due this afternoon. Elsewhere, a reminder that Japan will observe a market holiday on Tuesday, which may result in a limited round of afternoon trade in Tokyo.