Generally Firm, Some Long End Softening Ahead Of Supply

JGB futures gave back a portion of their overnight gains during Tokyo dealing before pushing higher again, last reading 16 above settlement levels, just shy of their overnight peak. Cash JGBs saw the major benchmarks out to 20s trade little changed to ~1.5bp richer, while longer dated paper (30s & 40s) saw very modest cheapening (around 0.5bp worth) ahead of tomorrow's 30-Year JGB supply.

• In terms of weekend news flow, PM Suga's ruling coalition gained seats in the Tokyo assembly vote, although it fell short of gaining a majority.
• There has been a lack of meaningful news flow evident since the Tokyo open, with BoJ Governor Kuroda offering little new in his latest address, while the BoJ's latest Sakura report saw the Bank leave its overall economic assessment of 5 regions as they were, while the bank upgraded 2 regions and downgraded 2 regions.
• The aforementioned round of 30-Year JGB supply headlines the local docket on Tuesday. Local wage and household spending data will also cross on Tuesday.