Light Bid In Futures Overnight

The bid in U.S. Tsys ultimately supported JGB futures in overnight dealing, with the contract finishing +6 vs. Tokyo settlement levels, a touch shy of best levels. The modest move may result in some catchup extension as Tokyo participants react at the re-open.

• Fiscal & border re-opening matters continue to dominate the local newswires.
• Jiji reported that the ruling Liberal Democratic Party's tax commission panel has proposed a plan to raise the corporate tax rate in Japan, while expanding tax relief measures for capital investment. The plan will be put in front of the government, with tax reform expected in 2023.
• Elsewhere, NHK suggested that Japan could waive quarantine requirements for visitors from nations with low COVID-19 rates. Japan is already launching a pilot programme, whereby small supervised groups of vaccinated tourists from selected countries will be allowed to enter.
• Japan’s monthly trade and core machine orders data is due on Thursday, as are BoJ Rinban operations covering 1- to 3-, 5- to 10- & 25+-Year JGBs.