Tankan & 10-Year Supply Due

Futures nudged higher overnight, finishing after-hours dealing 4 ticks above Tokyo settlement levels, proving immune to much of the late month-end related pressure in the U.S. Tsy space.

• There has been a lack of meaningful local news flow since the Tokyo close.
• New BoJ board member Nakagawa underscored the need for the BoJ to respond flexibly to economic issues, with a focus on countering the impact of COVID-19. Nakagawa also highlighted the need for sustainability of the Bank's ultra-loose monetary policy settings.
• The Q2 BoJ Tankan survey and 10-Year JGB supply will headline locally today. Note that ex-BoJ chief economist Hayakawa told MNI that "Japan's June Tankan business sentiment survey will show a clearer picture of the current K-shaped economic recovery, although the difference between the manufacturing and service sectors is likely to be shown as narrowing in the three months ahead."