Futures Recover Early Blip Lower

JGB futures regained some possie after their early blip lower, hitting the Tokyo lunch break 27 ticks above yesterday’s settlement level, although the overnight session high remains intact. 7s lead the bid on the wider JGB curve owing to the rally in futures, with the major JGB benchmarks running little changed to 2.5bp richer at typing. Local headline flow has been fairly limited thus far, with Japan’s Deputy Chief Cab Sec. Kihara noting that policymakers must be cautious of the economic risk of rising prices. This comes after the major CPI readings held steady in the month of May, matching expectations, while the services PPI print rose by 0.1ppt in the same month. Comments from BoJ Deputy Governor Amamiya are due later today.