JGB futures softened overnight, finishing......>

JGBS: JGB futures softened overnight, finishing the session 22 ticks lower than

the Tokyo settlement as core global FI yields moved higher.

- As a reminder, yesterday's 30-Year supply allowed the long end of the curve to

unwind its early underperformance despite the presence of the lowest cover ratio

at a 30-Year auction since November 2017, as the yield and price tails narrowed

vs. prior, allowing longer dated yields to move back from extremes in the wake

of the supply. As a result, yield changes were fairly parallel across the curve

in Tokyo hours, although the broader risk-on flows applied pressure to the

space.

- Local focus today moves to wage data and 1-10 Year BoJ Rinban operations.