A lack of concession, followed by a stellar....>

JGBS: A lack of concession, followed by a stellar 20-Year JGB auction, saw JGB

futures operate in positive territory in the early part of the Tokyo afternoon.

Some modest twist flattening has crept into the cash space in the wake of the

auction, as the initial bid has waned a touch.

- In terms of auction specifics, the auction saw the highest cover ratio for

20-Year supply since 2014, while the low price topped dealer exp. (proxied by

the BBG poll) as the tail narrowed. Attractive carry & roll & the fact that this

was the 1st round of 20-Year supply in the new FY (representing a new line)

likely supported demand, offsetting any worry re: demand ahead of the elongated

Golden Week holidays. In fact, the longer than usual holiday period may have

provided support to this round of supply, with no benchmark super-long supply

scheduled until 14 May.

- BOJ Governor Kuroda offered little new in his latest appearance.

- Focus tomorrow moves to BOJ Rinban operations covering 5-10 Year JGBs and the

latest round of Japanese trade data.