Futures Little Changed, Cash Firmer

JGB futures stuck to the confines of the overnight range for almost all of the Tokyo session, last -1. Cash trade has seen the entire curve richen (to varying degrees), with the 3- to 5-Year sector of the curve outperforming, as yields in that zone of the curve fell by 1.5-2.0bp. There is nothing in the way of conventional JGB supply due this week, with liquidity enhancement auctions covering the 5- to 15.5-Year and 15.5- to 39-Year buckets providing the only supply points of note. We also saw Cantor Fitzgerald launch a multi-tranche round of 2-, 3- & 5-Year JPY issuance.

• On the headline front weekend news flow saw the Governor of Osaka prefecture warn that he may need to request the declaration of a state of emergency if current COVID-19 mitigation measures are deemed "insufficient," which could add to recent declarations in other areas.