Weaker, As Bear Trend Remains Intact, Wages & BoJ Speak Next Week

JGB futures sit close to session lows in recent dealings. JBM4 was last at 143.02, -.18 versus settlement levels. This remains consistent with the broader technical backdrop, with a bear trend in place. Lows from yesterday rest sub 142.90.

• Post the earlier data flurry there hasn't been much in the way of major drivers. The BoJ bond ops were unchanged from the prior outcome, while the 3 month bill sale didn't impact sentiment.
• The data earlier showed close to expected Tokyo May CPI outcomes. Some of the core measures showed further deceleration versus the April y/y pace and services inflation looked to have cooled.
• Other data was mixed with retail sales better than expected (+1.2% m/m, versus 0.6% forecast), but IP fell 0.1% m/m (against a +1.5% forecast).
• In the cash JGB space, yields sit higher. The 10yr firming back towards 1.07%. The 30yr is up 2bps to 2.23%. In the swaps space, the 10yr is back above 1.09%.
• Next week Q1 Capex is out along with April wages. We also have BoJ speak, along with 10y and 30y debt auctions.