Futures Soften, Rinban Due

10-Year JGB futures shed 8 ticks in the final overnight session of last week, with the contract largely tracking gyrations in the U.S. Tsy space, closing a touch above worst levels of the day. This week’s early downtick in U.S. Tsy futures may apply some modest pressure to JGB futures at the re-open, while the JGB curve will have to play catch up to Friday’s post-Tokyo gyrations.

• There hasn’t been much in the way of notable domestic news flow over the weekend, with the government’s support continuing to nudge higher, while Trade Minister Hagiuda noted that sanctions on Russia will continue until a peace accord with Ukraine “becomes clear.”
• BoJ Rinban operations covering 1- to 5- & 10- to 25-Year paper headline the domestic docket today, and will be the first round of Rinban conducted since the well-documented adjustments made in the Bank’s Q2 Rinban plans. Looking ahead, participants will be aware of the proximity to 10- & 30-Year JGB supply, which are due on Tuesday & Thursday, respectively.