10-Year Supply Eyed After A Tight Morning

Another muted Tokyo morning for the futures contract, which hit the lunch bell +7 after sticking to a 4-tick wide range. Cash JGBs were generally 0.5-1.0bp firmer, aided by the overnight impulse from U.S. Tsys and a downtick for domestic equities. The local COVID situation continues to dominate headline flow, with Economy Minister Nishimura describing the hospital bed situation as severe, while Chief Cabinet Secretary Kato pleaded with the public to not cross prefecture lines, even if they have been vaccinated. 10-Year JGBs have failed to trade through the 0.01% level again, with 10-Year JGB supply headlining the local docket this afternoon.