Futures Tight, Curve A Touch Steeper

JGB futures coiled during the Tokyo morning, hitting the break 3 ticks above Friday's settlement levels and little changed from where they closed the final overnight session of last week.

• The long end of the cash JGB curve lagged a little in early trade this week, given the slight underperformance in U.S. Tsys during Friday's session and generally risk-positive start to today's session (although the broad risk-positive move has faded from extremes and wasn't particularly fierce). This resulted in some light steepening of the curve in morning trade. A reminder that the local curve was subjected to some light flattening pressure last week, with worry re: the issuance burden for long end JGBs surrounding the latest supplementary budget receding.
• The latest BoJ Tankan survey saw all of the major survey metrics edge closer to the neutral 0 level, although they all remained in negative territory. Meanwhile, the large firms' CapEx estimates missed expectations, surprisingly printing in negative territory.
• Participants now look to a government meeting re: COVID-19, which will be held after hours today.