JGB futures drifted lower on Monday, last......>

JGBS: JGB futures drifted lower on Monday, last -10, with the super-long end

underperforming in cash trade ahead of tomorrow's 40-Year supply, while local

equity markets were bid on the day.

- The latest round of BoJ Rinban ops, covering 1-10 Year paper, saw an uptick in

offer/cover ratios, although they still hold at average to low levels for those

tenors. Spreads widened at the ops (excl. 5-10 Year). Swaps wider from 10-Years

out, mixed further forward.

- Elsewhere, we saw the removal of the state of emergency for the Japanese

prefectures that were still under such instruction.

- There was also a Nikkei report which pointed to the Japanese government

finalizing a coronavirus relief package of more than Y100tn. The piece pointed

to approval of the package this coming Wednesday.

- 40-Year supply headlines the local docket Tuesday.