JGB futures ticked higher on the back of the...>

JGBS: JGB futures ticked higher on the back of the latest 40-Year JGB auction,

last +12 ticks as we move towards the close, which represents best levels of the

day. The 40-Year auction saw the high yield come in 2.0bp below dealer exp. as

the cover ratio jumped. Curve now flatter on the day post-supply, after the

early, light, steepening was reversed during the Tokyo morning. Comments from

Japanese FinMin Aso did little to move the market. He stressed that the Japanese

gov't needs to maintain market trust re: finances, as such trust is the reason

that Japanese yields "haven't spiked." Aso cautioned that the government

"shouldn't be relaxed" re: yields being low and that the size of Japan's

supplementary budget hasn't been set, yet. There was little else to go off in

terms of idiosyncrasies, with the Xinhua headlines re: the latest Sino-U.S.

trade call causing some volatility ahead of the lunch break, as futures printed

fresh lows before recovering.

- Santander announced the first batch of Samurai issuance in nearly 2 months,

with IPT of +43-47bp over swaps for a round of 5-Year issuance.

- Tomorrow's local docket: speech from BoJ's Sakurai & BoJ 5-10 Year Rinban.