Futures Weaker Overnight, Labor Earnings & Spending Miss

In post-Tokyo trade, JGBs are weaker, closing -19 compared to settlement levels, after US tsys finished flat to 7bps cheaper across the major benchmarks, the curve bear steepened.

• Earlier in the session pressure after hawkish Fedspeak from Bowman over the weekend marginally extended in the European session. NY Fed President Williams noted that he sees the need to keep policy restrictive for some time and that the peak rate is data dependent. He also noted that rate cuts may be warranted next year if inflation slows. Fedspeak from Philadelphia Fed President Harker and Richmond Fed President Barkin is due later today.
• The local data calendar is busy today. Real and Nominal labor cash earnings for June printed -1.6% y/y and +2.3% y/y versus expectations of -0.9% y/y (prior -0.9%) and +3.0% y/y (prior +2.9%) respectively. Household spending showed -4.2% y/y against expectations of -3.8% y/y (prior -4.0%). Weaker than expected data should support JGBs in early Tokyo trade.
• June BoP and trade balance figures, along with July banking lending out shortly. Later on, the Eco Watchers Survey is on tap.