Futures Weaker Overnight, Subdued Start To Week For US Tsys

In post-Tokyo trade, JGB futures are weaker, closing -12 compared to settlement levels, after US tsys finished a quiet Monday session with modest gains. The US tsy 10-year finished 2bps richer at 4.23%, while the 2-year yield was 1bp lower at 4.72%.

• US newsflow was light. Fed speak remained cautious: SF Fed Pres Daly notes that "the bumpiness of inflation data so far this year has not inspired confidence", and while "recent readings are more encouraging...it is hard to know if we are truly on track to sustainable price stability."
• The US economic calendar for the entire week looks fairly light. US PCE deflator data, Fedspeak, Tsy supply and the first US Presidential election debate, later in the week, are the highlights.
• Further weakness in big tech equities, including a third straight drop in Nvidia (-13% over that period for over -$400bn in market cap), weighed on the NASDAQ and the S&P 500 with respective losses of -1% and -0.3%. Both closed with record highs last Tuesday.
• Today, the local calendar will see PPI Services, Leading & Coincident Indices and Machine Tool Orders data alongside 20-year supply.