Should Show Higher

JGB futures finished the final overnight session of last week -4, with a bid expected at the Monday re-open on the back of the broader core FI backdrop flagged elsewhere.

• In terms of local news, the weekend saw Prime Minister Kishida note that Japan will extend its tight entry rules until early ’22 on the back of the broader global omicron outbreak. Elsewhere, the Nikkei suggested that “Japan is set to propose a Y107tn budget for fiscal 2022, with the pandemic response and rising social security costs again driving the total to a record high.” This was in line with other reports released last week, which also noted that cabinet approval for such a package is set to be made early this week, with submission to parliament due in early ’22.
• Monday’s local docket is bare.