Holding On To Overnight Gains

JGB futures had a look through their overnight high in early Tokyo trade, but the move was fleeting, as the contract faded from best levels. Futures last +10, with 7s outperforming on the cash JGB curve, owing to the uptick in futures. Swaps marginally wider vs. cash across the curve, excluding 30s and 40s (with receiving seen in the super-long end).

• Local headline flow has been light. Japanese PM Suga noted that the government will deploy the measures required to safeguard employment, while stressing that the sales tax is an integral part of social security in Japan.
• Elsewhere, Yomiuri sources suggested that the government will extend the period of its "Go To Travel" scheme beyond its current expiration date (end of January '21).
• The latest BoJ monetary policy decision headlines the local docket on Thursday (expect our preview to hit during Wednesday's London session).