JGB futures still sit lower than settlement....>

JGBS: JGB futures still sit lower than settlement as we move towards the Tokyo

close, albeit back from lows. Contract -8 ticks. Long end of the curve

outperforms in cash trade despite the prospect of even greater JGB issuance to

fund the extra budget (largely discounted last week), swap spreads trade mixed.

On the budget front, RTRS suggested that "Japan's economic stimulus package will

be revised to Y117.1tn from Y108.2tn, boosted by the expansion of a cash payout

scheme aimed at lessening the pain from the coronavirus outbreak, a draft

obtained by Reuters showed. Fiscal spending will account for Y48.4tn, of which

around Y25.6tn will be funded by an extra budget for the fiscal year that began

on April 1, it showed. The extra spending plan is expected to be approved by

Prime Minister Shinzo Abe's cabinet as early as Monday." Foreign Minister Motegi

has noted that a decision will come later today.

- Weekend news flow was centred on COVID-19 matters, namely the Japanese health

system's ability to deal with the virus, in addition to the knock on economic

effect for part time workers.

- 20-Year supply headlines locally tomorrow.