Futures Uptick, US Tsys Curve Twist Flattened, Light Local Calendar

In post-Tokyo trade, JGB futures are stronger, closing +8 compared to settlement levels, after cash US tsys finished 1bp cheaper to 4bps richer across the major benchmarks with the curve twist flattening, pivoting on 3s. In a quiet day data-wise, tsys were pressured to session lows on spillover from EGBs, rate locking tied to incoming corporate debt issuance also weighed in early in the NY session.

• The US data calendar was quiet, but the NY Fed’s global supply chain pressure index (GSCPI) fell to a record low at -1.71 standard deviations below average in May for a series starting in 1997. This suggests less goods US inflation pressure.
• JGB futures continue to operate close to recent lows, with 148.48 marking the near-term support. According to MNI's technicals team, the recent bounce off the lows helped stall a more protracted pullback, although the gap with key resistance at 149.17 remains.
• The local authorities released revised plans for its chip strategy late yesterday, aiming to triple sales of domestically produced semiconductors to $108bn by 2030 (see this link, ICYMI)
• The local data calendar has the April preliminary leading and coincident indices. The market consensus for the leading index is 98.2 (prior 97.7), for the coincident index it is 99 versus 98.8 prior. These releases are unlikely to move market sentiment.