JGB futs faded from best levels in the.........>

JGBS: JGB futs faded from best levels in the afternoon, as core global FI

softened from best levels. Contract finished the Tokyo session 41 ticks lower.

- A mediocre round of 20-Year JGB supply compounded the pullback, although the

auction itself may not have been quite as soft as some feared (still builds on

recent theme of tepid primary demand on heightened vol & outright richening).

Looking at details, it was decent enough on the price front at 1st glance, with

the low price > dealer exp. (as proxied by the BBG poll @ 100.80), although

market was soft ahead of supply, so estimates may have been cautious. Elsewhere,

slight widening of the tail & downtick in the cover ratio represent what we have

seen in other recent auctions, although maybe not as extreme as other cases.

Space saw a light bid in the wake of the auction, before the broader pullback

was seen, although swap tightening held throughout. 10-20s underperformed.

- Elsewhere, BoJ Governor Kuroda noted that he discussed recent financial market

moves with PM Abe, reiterating that the BoJ is responding to the impact of

coronavirus through providing ample liquidity and conducting appropriate asset

purchases... nothing new there.