Futures Weaker Overnight, Light Local Calendar

In post-Tokyo trade, JGB futures are weaker, closing -18 compared to settlement levels, after US tsys finished the Monday session 5-7bps cheaper amid a hefty corporate calendar. Monday's move partially reversed recent gains that saw yields hit multi-month lows. An easing in French political uncertainty over the weekend also weighed.

• US rates broke through their early trading range amid word Home Depot would issue corporate debt over 9 tranches. Speculative selling added to rate lock hedging well before the $10bn 9pt launched, a lion's share of just over $20bn total issuance on the day.
• The June Empire State index improved but the headline remained in contractionary territory.
• The S&P 500 and the Nasdaq Composite added ~1% after Tesla and Apple pressed higher.
• ICYMI, BoJ Governor Ueda said yesterday that he needs to closely monitor foreign exchange rates and import prices for any impact on inflation. Service prices are rising gradually and expected to keep increasing, Ueda said in response to a question in parliament (per BBG). Meanwhile, Prime Minister Fumio Kishida emphasized that decisions on BoJ’s ETFs are up to the central bank.
• Today, the local calendar will see the Bloomberg June Economic Survey results alongside BoJ Rinban Operations covering 1-25-year JGBs.