JGB futures edged higher during Tokyo trade,...>

JGBS: JGB futures edged higher during Tokyo trade, last +12 vs. settlement, with

the 5-10 Year zone of the cash curve underperforming all day in the build up to

and in the wake of the latest liquidity enhancement auction for 5-15.5 Year off

the run JGBs. The auction itself was probably best described as tepid, with

little reaction after results were seen, before a fresh round of risk-off flows

provided broader support for the space.

- Comments from PM Abe pointed to a need for Japan to do all that it can to

fight off the current economic headwinds and protects jobs.

- Elsewhere, Japanese Foreign Minister Motegi noted that it was not true that

the government had decided to ease an entry ban, which was put into place to

prevent the spread of COVID-19. This came after Tokyo recorded an uptick in

COVID-19 cases over the weekend.

- Focus tomorrow turns to the latest BoJ monetary policy decision (expect our

preview to be published in the London morning)