In Tokyo morning trade, JGB futures have slightly extended Friday’s sharp sell-off, -63 compared to settlement levels.

• Japan's industrial production fell 3.3% in August compared with last month, marking the first fall in two months. The fall was led by the automobile industry and electrical, information and communications machinery industry.
• Retail sales rose 0.8% in Aug. from a month earlier, compared to median estimate of +0.5%.
• NHK has reported that Japan's general election will be held on October 27th, with LDP leader Shigeru Ishiba to dissolve the lower house on October 9th (per BBG/NHK). See this link for more details. There was speculation on Friday, after he won the run off, around an early election.
• Cash US tsys are flat to 1bp cheaper in today’s Asia-Pac session after Friday’s solid post-PCE gains.
• Cash JGBs are flat to 4bps cheaper across benchmarks, with a flattening bias. The benchmark 2-year yield is 1.7bps higher at 0.384% ahead of today’s supply.
• Swap rates are little changed out to the 30-year and 4bps higher beyond. Swap spreads are mixed.