Subdued Session Ahead Of Key Data, 30Y Supply Tomorrow

JGB futures are stronger, +6 compared to settlement levels, after a relatively subdued local session.

• Outside of the previously outlined Composite and Services PMIs, there hasn't been much in the way of domestic drivers to flag.
• Cash US tsys are 1bp cheaper to 1bp richer in today’s Asia-Pac session, with a slight flattening bias. There is a heavy US data drop in today’s shortened session (floor closes at 1300ET, cash at 1300ET while Globex closes at the normal time of 1700ET): Challenger Job Cuts, ADP Employment, Weekly Jobless claims, ISM Services, Factory/Durables Orders and June FOMC Minutes. Friday's full session sees June Non-Farm Payroll data.
• The cash JGB curve has twist-steepened, pivoting at the 20s, with yields 2bps lower to 1bp higher. The benchmark 10-year yield is 0.2bp lower at 1.084%.
• There was no change in today’s BoJ bond buying as the market awaits more details on the BoJ plans. The central bank is meeting with key stakeholders in the bond market space early next week.
• Swap rates are 1-2bps lower across maturities. Swap spreads are mixed.
• Tomorrow, the local calendar will see weekly International Investment Flow data alongside 30-year supply.