JGB futures drew support from ongoing worry....>

JGBS: JGB futures drew support from ongoing worry re: the COVID-19 situation in

Tokyo (with press reports pointing to a record high for daily new cases in the

city) last +22, pushing through initial technical resistance, while the latest

1-5 Year liquidity enhancement auction for off the run 1-5 Year JGBs passed

smoothly.

- The curve bull steepened early on with, with underperformance evident in the

long end as focus turned to next week's 20-Year supply. The long end then

unwound its underperformance as we moved towards the bell, playing catch up to

the rest of the curve.

- Worth noting that the most recent round of weekly international security flows

data revealed that foreign investors reversed last week's net selling of

Japanese bonds, picking up a net Y749.6bn in the most recent week.

- BoJ Rinban ops covering 1-10 Year JGBs headline locally on Friday.