AUSSIE BONDS: Cheaper Ahead Of Jackson Hole, Jun-54 Supply Due

Local Japan newspaper Yomiuri is reporting that Japan PM Ishiba will consider his future after assessing US-Japan trade negotiations. This comes after the weekend upper house election results where the LDP led coalition lost its majority. 

• Via RTRS: "Japanese Prime Minister Shigeru Ishiba is planning to decide on his future after assessing progress in tariff negotiations with the United States, Yomiuri newspaper reported on Wednesday. The prime minister is planning to hold a press conference to announce his decision once the tariff negotiations' outcome becomes clear, the newspaper reported without citing its sources."
• Elsewhere, NHK noted: "Japan’s chief trade negotiator Ryosei Akazawa has entered the White House to discuss tariffs with US President Donald Trump, public broadcaster NHK said citing government sources. Akazawa earlier met with US Treasury Secretary Scott Bessent for about 30 minutes, according to NHK, after Bessent suggested the two sides may be getting closer to an agreement." via BBG. 

In local morning trade, NZGBs are 2bps richer after a good day for Treasury bulls.

• US yields continued to fall amid several factors. Yields 3bps lower with the 10- and 30-year rates to 4.344% and 4.917%, respectively. The 2-year yield also fell 3bps to 3.833%.
• Ongoing momentum from the technical buying supported after key levels held last week, including 4.50% on the 10-year, 5.00% on the 30-year, and 4.00% on the 2-year.
• The upcoming tariff deadlines added to the demand. Treasury Secretary Bessent's comments supporting Fed Chair Powell staying on helped trim Fed fears.
• There have been further indications of decent demand for US tsys at auction, and expectations for no increases in nominal coupon issuance at next week's August refunding are further supported.
• Swap rates are 1bp lower.
• RBNZ-dated OIS pricing is little changed across meetings. 21ps of easing is priced for August, with a cumulative 38ps by November 2025.
• Today, the local calendar will be empty.
• On Thursday, the NZ Treasury plans to sell NZ$225mn of the 3.0% Apr-29 bond, NZ$175mn of the 2.75% Apr-37 bond and NZ$50mn of the 5.0% May-54 bond.

• MNI: UK APR-JUN MEDIAN PAY AWARDS +3% :Brightmine