JGB futures sit 5 ticks above settlement.......>

JGBS: JGB futures sit 5 ticks above settlement levels as we work towards the

close, benefitting from the broader sense of caution and a solid enough

liquidity enhancement auction for off the run 5-15.5 Year JGBs.

- Yields were richer across the curve, although moves weren't quite uniform.

- Japanese tax chief Amari told BBG that another supplementary budget will come

once COVID-19 is better controlled, Amari also confirmed that any shortfalls in

tax revenue will likely be filled through JGB issuance. Amari went on to note

that a third extra budget may be accompanied by an election. He expects the next

supplementary budget to be drawn up at some point this year.

- Elsewhere, Japanese Economy Minister Nishimura noted that a state of emergency

could be declared if COVID-19 infections "grow further."

- The latest BoJ monetary policy decision headlines locally on Wednesday, expect

our full preview to be released at some point during the London morning.