Better Bid On Tuesday

JGB futures held a narrow range during the Tokyo morning, trading either side of unchanged, before nudging a little higher in the afternoon to last deal +8.

• A light bid crept into the space despite a less than inspiring round of 30-Year supply all told, as there wasn't any signs of deterioration vs. last month's 30-Year JGB auction. The low price topped broader dealer estimates. The tail width was marginally tighter when compared to the previous round of 30-Year supply. The cover ratio nudged higher when compared to last month's offering but remains somewhat low (a reminder that last month's cover represented a multi-year low for 30-Year JGB supply). The auction result also drove some modest bull flattening.
• Elsewhere, domestic wage & final Q1 GDP data comfortably topped expectations this morning.
• Flash machine tool orders data and BoJ Rinban operations covering 1- to 10-Year JGBs headline locally on Wednesday.