Futures Supported, Twist Flattening Holds

JGBs meandered through the morning session after the early twist flattening, with futures supported, as the contract hit the lunch bell 6 ticks above yesterday's settlement levels. Comments from Japanese Finance Minister Aso failed to move the needle, as he pointed to a need to balance economic support with fiscal discipline, he also identified the need to boost government revenue while limiting spending. Aso noted that he doubts such measures would promote a weaker JPY and inflation owing to Japan's financial standing. This afternoon's 30-Year JGB supply may have limited the longer end of the curve a little.