Futures Softer At The Margin, Cash Mixed

The impetus from Tsys/e-minis/the Nikkei 225 weighed on JGB futures in early dealing this week, with the contract shedding its fairly modest overnight gains and more, last -5 ticks vs. Tokyo settlement levels. The swaps curve twist flattened, with receiving seen in 40s, which was an outlier, while cash JGB yields sit either side of unchanged.

• BoJ Governor Kuroda's weekend address offered no fresh insight, as he reaffirmed the Bank's view on the Japanese economy and pushed back against the idea of movement in the Bank's forward guidance and/or inflation target.
• The latest monthly Japanese trade surplus was narrower than expected, as exports missed and imports beat when compared to consensus expectations.
• 20-Year JGB supply headlines locally on Tuesday.