Futures Weaker With US Tsys, 40Y Supply Due

In post-Tokyo trade, JGB futures are weaker, closing -8 compared to settlement levels, after US tsys finished 5bps cheaper across benchmarks ahead of Thursday's busy US calendar: GDP, PCE, Weekly Jobless Claims and Tsy Sec Yellen’s Outlook. US PCE inflation data is due on Friday.

• US tsys were pressured by the combination of risk-on sentiment, stronger-than-expected PMI data, an ugly $61bn 5-year auction (4.055% high yield vs. 4.035% WI; 2.31x bid-to-cover vs. 2.50x in the prior month) and a heavy corporate supply calendar.
• Risk on sentiment also weighed, with the S&P 500 hitting a record high of 4903.68 before paring some of its advance. The NASDAQ advanced over 1% intraday, before finishing up 0.4%.
• Elsewhere, the BoC held its policy rate steady at 5% and moved from a tightening to a neutral bias.
• Today, the local calendar sees Weekly International Investment Flows, Tokyo Condominiums for Sale, Dept Store Sales and Machine Tool Orders data.
• The MoF plans to sell Y700bn 40-year JGBs.