Wage Talks & Kishida’s Favourability Top Local News Flow

JGB futures shed 11 ticks in the final overnight session of last week, moving away from best levels alongside a similar move in U.S. Tsys.

• Domestic news flow has seen the Mainichi report that an advisory panel at Japan’s labour ministry is set to recommend raising the national minimum wage by at least Y30/hour during the current FY. The outlet cited an unidentified source, while noting that this would represent the largest hike ever, if realised (equating to a ~3.2% rise in percentage terms, based on current minimum wage levels).
• Elsewhere, PM Kishida has lost some ground when it comes to his approval ratings, with the latest Nikkei poll revealing a dip in his approval ratings, while a Kyodo poll revealed his lowest approval rating since he took office, as the resurgence of COVID dented his scores.
• Also note that Friday saw the BoJ reveal an unchanged Rinban plan for the month of August.
• We wouldn’t expect any of the above matters to meaningfully move the space at the start of the new week.
• Final manufacturing PMI data headlines the domestic docket on Monday.