Flatter At The Margins

The JGB curve bull flattened this morning, although the move was relatively limited, while futures hit the lunchbreak +2 vs. settlement levels, sticking to a contained range. There was nothing in the way of a notable market reaction to the Nikkei piece covering comments from a senior LDP Party official who suggested that "the government of new Prime Minister Yoshihide Suga and Japan's ruling coalition have begun discussing a fresh round of spending on coronavirus prevention and steps to pull Asia's second-largest economy out of recession, to be ready as early as this year. The stimulus package will be funded by Japan's third extra budget for the current fiscal year." This report was subsequently played down by Finance Minister Aso, noting that the government still has funds from the previous additional budget and in reserves.

• The BoJ left the size of its 3-5 & 10-25 Year BoJ Rinban ops unchanged, with the following cover ratios: 3-5 Year offer/cover 2.84x (prev. 3.34x), 10-25 Year offer/cover 4.21x (prev. 3.46x)