Futures Slightly Stronger Overnight Despite Higher US Tsy Yields

In post-Tokyo trade, JGB futures are slightly stronger, closing +7 compared to settlement levels, despite US tsys bear steepening in the NY session. Cash tsys finished 2-7bps cheaper across the major benchmarks.

• Later today, US retail sales, empire manufacturing, business inventories and cross-border investment are due. Fedspeak from Federal Reserve Bank of Minneapolis President Neel Kashkari also crosses.
• More than $1.8 billion came out of the $39 billion iShares 20+ Year Treasury Bond ETF (ticker TLT) last week, the most since March 2020, data compiled by Bloomberg show. (See link)
• Today the local calendar sees the preliminary read of Q2 GDP, with a print of +0.8% q/q expected versus +0.7% prior.
• Today also sees the MoF sell Y2.5tn of 5-year JGBs. The highest outright 5-year yield level since March combined with expectations of ongoing monetary easing could potentially assist the takedown of today's auction, although lower demand is likely after last month’s stellar performance.