JGB futures could lean on the broader risk.....>

JGBS: JGB futures could lean on the broader risk aversion, but also drew fresh

support from a solid 10-Year auction (some reasoning outlined in our auction

preview). As a reminder, the auction saw a tight tail & a low price that >

dealer exp. Cover ratio eased a touch, but not by much, which was more than

acceptable given the slightly lower yield levels seen at this auction. A solid

start to a heavy round of incoming supply over the next couple of weeks, with

participants on the lookout for any clues re: fiscal easing, cognisant of the

idea any fresh JGB issuance could be roiled out the curve, given the initial

supplementary budget saw issuance focused in the short-end/belly. On that note,

Finance Minister Aso wouldn't be drawn on the size of any potential

supplementary fiscal measures. Contract last +10. 30s outperformed in cash

trade, while swaps generally lagged. There was nothing in the way of notable

comments from BoJ Governor Kuroda as he pointed to the need to work closely with

the government and reiterated that the BoJ is willing to do whatever it can to

support the economy, painting a gloomy view of the current economic backdrop.

- The latest round of BoJ Rinban operations headline tomorrow.