Politics & Offshore Impetus To Dominate

JGB futures digested the confirmed assassination of former Japanese PM Abe during the final overnight session of last week, while the latest monthly U.S. NFP print provided some fresh bearish impetus, which moderated from extremes into the bell, leaving the contract -6 at the close of post-Tokyo dealing.

• Note that the weekend saw the ruling LDP-Komeito coalition expand its majority in the upper house of the Japanese parliament. Participants will continue to assess the likelihood of changes to Japan’s defence policy and further out, monetary policy, given the loss of Abe & tightening grip of power that the ruling coalition has enjoyed (see earlier bullets for more details on those matters).
• Core machine orders and machine tool orders present the highlights of today’s domestic data docket, while the latest address from BoJ Governor Kuroda will likely underscore the Bank’s on hold stance.