Little Changed, Cash US Tsys Slightly Weaker After Yesterday’s Holiday

In Tokyo morning trade, JGB futures are holding stronger, +8 compared to settlement levels.

• According to MNI’s technicals team, futures faded into the tail-end of last week, putting pressure on nearby support and prompting a poor weekly close. The break lower from here has seen 142.85 - the late May low - give way, with the 142.06 1.0% 10-DMA envelope and 142.00 handle and 141.65 further out - a Fibonacci projection. Key resistance remains at 145.95, the Mar 28 high, off which prices have faded into mid-week.
• Outside of the previously outlined Household Spending data, there hasn't been much in the way of domestic drivers to flag. The local calendar will also see Leading & Coincident Indices later.
• Cash US tsys are dealing flat to 1bp cheaper, with a steepening bias, after yesterday’s holiday.
• Cash JGBs are little changed across benchmarks. The benchmark 10-year yield is 0.3bps lower at 1.078% versus the cycle high around 1.10%.
• According to Bloomberg calculations using official data, "Japan sold $1.88 trillion worth of bonds this year as of July 4. Issuance was down 19% compared to the same period last year."
• Swap rates are slightly lower across maturities, with swap spreads somewhat mixed.