JGB futures drifted lower overnight, even as...>

JGBS: JGB futures drifted lower overnight, even as BoJ Governor Kuroda

reiterated that the Bank will carry out additional easing if required, and noted

that the Bank's current forward guidance could be extended if needed.

- Japanese Finance Minister Taro Aso noted that he doesn't see the need for an

additional fiscal package at present and reiterated that the country will hike

the sales tax later this year, as planned, barring a Lehman type event.

- The longer end experienced some modest outperformance, aided by a strong

30-Year auction which saw the tail tighten and bid to cover rise vs. the

previous auction. Also worth noting that the low price topped dealers' exp.

- BoJ 5-10 Year Rinban operations provide the highlight tomorrow.