Drifting Through Tokyo Trade

JGB futures softened during the Tokyo afternoon, going out 2 ticks softer on the day, after an early, shallow look above the overnight range faded. Cash trade saw some marginal underperformance for the longer end and 5-Year zone for most of the day, although none of the signs of foreign swap payers evident, as the recent LCH/JSCC 30-Year swap spread widening flattened out. The latest round of BoJ Rinban ops saw purchase sizes left as they were, while the offer/cover in the 25+ Year ops moderated. Elsewhere, we learnt that the Japanese cabinet has decided to spend a little over Y1.1tn of its emergency reserves to fund measures to deal with COVID-19.