Firmer Despite Questionable Long End Supply

JGBs saw a modest bid creep in during early Tokyo trade. Much of the move came before the latest bid in U.S. Tsys, with little local news apparent to drive the uptick, outside of a downtick in local equity indices. Local data was mixed, with household spending missing and labour cash earnings data beating. The latest round of 30-Year supply wasn't the firmest, with local participants likely eying the allure of offshore paper in the early part of the new Japanese FY, although the low price managed to top dealer expectations, while the tail narrowed and cover ratio firmed. Still, the latter continued to operate in the lower confines of the recently observed range, with the March auction providing a particularly low comparative bar. Still, the space has firmed into the close, with futures +13 on the day. The cash curve has bull flattened, with the super-long end looking through the sub-par auction results.