2s Outperfrom As Long End Demand Vanishes

Broader flows seemingly weighed on the JGB space after some underperformance for futures in the final overnight session of last week. Contract last -19 ticks vs. settlement, hovering just off lows, with the cash curve twist steepening as 2s outperfrom.

• The latest round of 1-3 Year BoJ Rinban ops saw the size left unchanged, cover ratio ease and spreads widen a touch when compared to the previous ops. Elsewhere, the final round of Q1 GDP data edged up vs. the prior estimate, but still printed in negative territory (the improvement was supported by a beat in CapEx).
• After hours on Friday saw the Japanese government note that it won't be able to balance its budget until the fiscal year ending March 2030, at the earliest.
• Tokyo CPI data and 10-Year supply headline locally on Tuesday.