Futures hover just above session lows as we....>

JGBS: Futures hover just above session lows as we move towards the close, last

-18, with the uptick in risk sentiment outweighing the tightening in the

offer/cover ratio witnessed in the latest round of BoJ Rinban ops (which covered

5-10 Year paper), as the BoJ upped its purchase size covering the bucket by

Y20bn. The ops also saw a widening of spreads. 7s the weak point on the curve in

cash trade. Little in the way of notable concession in the super-long end ahead

of tomorrow's 30-Year supply, while the 2-4 Year sector of the curve

outperforms.

- New COVID-19 cases in Tokyo remain >100 (per the daily tallies), while the

city's Governor (who also declared victory in the local election over the

weekend) pleaded with Tokyo citizens to avoid unnecessary travel outside of the

city.

- Recapping Friday's GPIF notes, the fund shed Y5.9319tn worth of domestic bonds

for rebalancing purposes in FY19/20 (no real surprise there).

- The aforementioned 30-Year supply and cash earnings data headline locals on

Tuesday.