10-Year Supply Eyed After Rinban Moves

There has been a lack of notable tier 1 developments to drive the market since the Tokyo re-open, with the curve bear steepening in the wake of the previously flagged BoJ Rinban adjustments for the month of April. Futures finished the morning session 24 ticks below settlement levels, with bears struggling to exert fresh downward pressure after the weakness witnessed during overnight trade. The Q1 BoJ Tankan survey generally revealed inline to stronger than exp. metrics, which were more favourable than Q4's offering. The CapEx print was particularly firm vs. exp. 10-Year JGB supply provides a supply challenge this afternoon, particularly as it comes in the wake of the previously flagged Rinban adjustments.