Futures Richer & At Session Highs, BoJ Nakamura Speech & 30Y Supply Tomorrow

JGB futures are sharply higher and at session highs, +41 compared to the settlement levels.

• Outside of the previously outlined Labour and Real Cash Earnings and Jibun Bank PMIs, there hasn't been much in the way of domestic drivers to flag.
• (Dow Jones) Japan labour survey data for April confirms that the gradual increase in wage growth continues, ING economists say. "We expect real wage growth to turn positive by June, giving the BoJ more confidence for another rate hike," Robert Carnell and Min Joo Kang say. ING now expects a 15bp BOJ rate hike in July.
• Cash US tsys are 1-2bps cheaper in today’s Asia-Pac session. The US calendar today will see MBA Mortgage Applications, ADP Employment Change and S&P Global US PMI & ISM Services Index.
• Cash JGBs are richer across benchmarks, with yields flat (1-year) to 4.4bps lower (5-year). The benchmark 10-year yield is 3.3bps lower at 0.997% versus the cycle high of 1.101% set last week.
• Swaps are richer apart from the 20-30-year zone, with rates 2bps lower to 2bp higher. Swap spreads are mostly wider.
• Tomorrow, the local calendar will see Weekly International Investment Flow and Tokyo Avg Office Vacancies data along with a speech from BoJ Board member Nakamura in Sapporo. The MoF also plans to sell Y900mn of 30-year JGBs.