Curve Twist Steepens

JGBs didn't show any notable reaction to virtually in line with expectation local CPI data, while the latest round of BoJ Rinban operations revealed mixed results, which were as follows:

• 1-3 Year ops saw an uptick in cover and widening of spreads, 5-10 Year ops saw an uptick in cover and narrowing in spreads and 25+Year ops saw an uptick in cover and widening of spreads.
• Futures last -7, perhaps pressured by the uptick in 5-10 Year Rinban offer/cover. Still, 7s outperformed all day in cash trade, while super-long paper lagged.
• We also saw continued contractionary readings across the board in the flash Jibun Bank PMI prints.
• In local news flow the Asahi has reported that the government is mulling extending the limit on event sizes through the end of September. Elsewhere, NHK sources noted that Japan plans to ease its COVID-19 entry restrictions on foreign nationals with resident visas starting next month.
• 3-5 Year BoJ Rinban ops headline locally on Monday.