Generally Cheaper To Start The Week

JGBS have generally been a touch cheaper than Tokyo settlement levels during Monday trade, with futures printing 11 ticks worse vs. Friday's Tokyo close at typing, holding a tight range at the start of a new week, grinding away from the lows witnessed shortly after the morning open.

• There was little reaction to the moderation in cover ratios witnessed across the latest round of 1-3 & 25+ Year BoJ Rinban ops, while the 3-5 Year ops saw a slight uptick.
• Chief Cabinet Secretary Suga, favourite to succeed Japanese PM Abe, re-affirmed his support for the current BoJ Governor Kuroda and ultra-loose monetary policy in an interview with the Nikkei, made over the weekend, and also re-iterated his views re: the sales tax elsewhere.
• We also heard from LDP General Council chief Shunichi Suzuki over the weekend, as he noted that after forming a cabinet, whoever becomes the next new PM could immediately dissolve the lower house and call a snap election. Worth flagging that approval ratings have seemingly seen a sharp bounce since Suga became the frontrunner.
• A reminder that Friday saw the latest MNI Insight piece suggest that the Bank of Japan will likely revise its assessment of both the domestic and global economies higher at its September policy meeting, but it will maintain its cautious outlook as downside risks remain evident. BBG source reports, released later in the day, told a similar story.
• Wage data and 5-Year supply headlines locally on Tuesday.