JGB futures shed 7 ticks in overnight trade....>

JGBS: JGB futures shed 7 ticks in overnight trade. The contract was initially

pressured by the BoJ's latest Rinban plan adjustments, with little support for

the super-long end seen, which could facilitate further curve steepening in

Tokyo cash trade (although most expected such a move). The BoJ lifted the upper

limits of its Rinban op purchase bands out to 10 Years for the month of July.

The reasoning behind such a move was 2-fold. 1) It will have to deal with the

increase in JGB supply to finance fiscal spending. 2) It wants a steeper curve.

The Bank also lifted the lower boundary of its 1-3 Year JGB purchase band. A

softer Tsy complex kept a lid on the contract in overnight trade, as it finished

off worst levels.

- Elsewhere, plans/speculation of Japan's re-opening to foreigners continue to

do the rounds, while the Tokyo government confirmed it will focus on the broader

trend of COVID-19 cases in the city, as opposed to absolute levels, when

assessing measures re: the virus (in line with earlier press reports).

- See earlier bullet for recent commentary from BoJ Deputy Governor Wakatabe.

- The Q2 Tankan survey & 3-5 Year BoJ Rinban ops headline locally today.