Global Impetus Set To Weigh

JGBs will likely come under pressure in early Tokyo dealing, given the weakness observed in core global FI markets overnight (JGB futures shed 6 ticks in overnight dealing), giving rise to the potential for further weakness in the super-long end of the JGB curve. The proximity to Wednesday’s 30-Year JGB auction may also weigh on that area of the curve.

• Note that late Monday (Tokyo time) saw BBG source reports indicate a Y5tn uptick in calendar based JGB issuance, with the proceeds being used to fund Japan’s fiscal spending campaign. This report was very similar to comments made by RTRS sources earlier in the day.
• Domestic highlights include the release of the latest wage and household spending data, BoJ Rinban operations covering 1- to 10-Year JGBs and the release of the summary of opinions from the latest BoJ monetary policy decision.