JGB futures have tagged fresh highs, with......>

JGBS: JGB futures have tagged fresh highs, with defensive posturing broadening

into European hours, the cash curve has twist steepened. Contract +15 last.

- The BoJ left the size of its 1-3, 5-10 & 25+ Year Rinban ops unchanged, with

the 1-3 & 5-10 Year ops seeing steady offer/cover ratios and tighter spreads,

while the 25+ Year ops saw a dip in the cover ratio and tighter spreads.

- Elsewhere, focus continues to fall on the nudge higher in the COVID-19 case

count in Tokyo, which officials attribute to an uptick in testing.

- RTRS sources noted that "Japan is likely to revise its economic assessment up

slightly at its monthly report for July." Elsewhere, the Yomiuri ran a report

noting that the BoJ is expected to maintain its view that the Japanese economy

will improve in H220, when it convenes next week. An MNI Insight piece noted

that "the BoJ believes its own front-loaded buying & attractive investment rates

for life and pension funds will prevent a sharp rise in JGB yields over coming

months, even as issuance increases."

- On the supply front the Nikkei has suggested that the Development Bank of

Japan will issue Y10bn worth of 50-Year paper this month.