JGB futures are 5 ticks higher on the day,.....>

JGBS: JGB futures are 5 ticks higher on the day, holding a tight range, even

with equities well bid, while cash trade has seen 40s underperform and the front

end of the curve remain bid.

- That dynamic was aided by a fairly tepid round of 40-Year supply. The auction

saw the high yield come in marginally above BBG dealer poll exp., a less than

inspiring cover ratio and jump in % allotted at the high yield vs. the March

auction. Maybe a case of supplementary budget worry outweighing the shine of

fresh primary issuance? Also worth flagging that the previous auction of 40-Year

paper was particularly weak, on the back of March's market volatility.

- On the corporate issuance front BBG noted that Softbank's Z Holdings is

planning a ~Y200bn bond sale for the month of June, while Credit Agricole

announced a new Samurai tier 2 subordinated round of issuance.

- BoJ Governor Kuroda maintained a downbeat economic view and pointed to the

potential of introducing new methods of easing, once again, if required.

- 6-Month bill issuance and the aforementioned supplementary budget matters will

be eyed on Wednesday.