Futures continued to trickle lower early in....>

JGBS: Futures continued to trickle lower early in the Tokyo morning, bottoming

out shortly after news hit noting that foreign investors shed a record amount of

10-Year JGBs during the month of March, with a broader defensive feel likely

providing some support as the contract headed into lunch 13 ticks below

settlement.

- In terms of news flow, Foreign Minister Motegi has confirmed that the

government will make a decision re: extra budget measures later today, after

speculation in the press (see earlier bullets for details, bond issuance is set

to fund any shortfalls). Little else of note domestically.

- Curve has twist flattened this morning, even ahead of tomorrow's 20-Year

supply. Swap spreads mixed across the curve.