JGB futures also traded on the backfoot,.......>

JGBS: JGB futures also traded on the backfoot, last -14, as the 7-Year sector

underperformed. Focus fell on the potential for further domestic fiscal

spending. The potential for relatively broad domestic lockdown easing before

month-end also aided risk appetite. Swap spreads are mixed across the curve.

- The summary of opinions from the most recent BoJ MonPol decision did little to

jolt markets.

- BoJ Rinban ops saw the Bank up its 3-5 Year purchase size by another Y50bn,

after it trimmed the number of ops for that particular bucket scheduled for the

month of May to 5. The upping in purchase size over the 2 most recent ops

covering the bucket will more than offset the reduction of operations on a

cumulative M/M basis. Purchase sizes elsewhere were left unchanged.

- The offer to cover ratio for 3-5 Year ops edged higher, while the same metric

for the 25+ Year bucket jumped over 4 (potentially pointing to supply setup).

Spreads widened for both these buckets. Conversely 1-3 Year ops saw a steady

cover ratio and narrower spreads.

- 10-Year supply headlines tomorrow.