Futures Slightly Weaker Overnight Despite Modest Gains For US Tsys

In post-Tokyo trade, JGB futures are slightly weaker, closing -3 compared to settlement levels.

• Overnight, Fed Chair Powell's comments at the ECB conference in Sintra that there are signs that the disinflationary trend has resumed after the Q1 pause and that "a lot of progress has been made" underpinned gains for US tsys and equities.
• US tsys pared gains after higher-than-expected JOLTS job openings of 8.14mn vs. 7.946mn est, while prior was down revised to 7.919mn from 8.059mn.
• The US 10-year yield reached the session lows near 4.41% following Powell’s comments before rebounding on the JOLTS data to close at 4.43%, 3bps richer.
• There is a heavy US data drop in today’s shortened session (floor closes at 1300ET, cash at 1300ET while Globex closes at the normal time of 1700ET): Challenger Job Cuts, ADP Employment, Weekly Jobless claims, ISM Services, Factory/Durables Orders and June FOMC Minutes. Friday's full session sees June Non-Farm Payroll data.
• Today, the local calendar will see Jibun Bank Composite & Services PMI data alongside BoJ Rinban Operations covering 1-5-year and 10-25-year JGBs. No change in bond buying is expected as we await more details on the BoJ plans. The central bank is meeting with key stakeholders in the bond market space early next week.