JGBs were pressured by the broader tone in.....>

JGBS: JGBs were pressured by the broader tone in core FI as well as by some

idiosyncracies.

- Cash trade saw some twist steepening as 2s outperformed and the longer end

fell foul of the BoJ Rinban plans for July (which will no doubt please the

Bank).

- The BoJ lifted the size of its 3-5 Year Rinban ops by Y30bn (to Y350bn),

although this had little impact on prices as such a move was already discounted

by participants. The breakdown of the ops saw a marginal uptick in the

offer/cover ratio and widening of spreads vs. prev. ops.

- The downtick in local equity markets and JPY crosses may have provided modest

support for the space, limiting losses.

- The Q2 Rinban survey was softer than expected on net. Large firms' CapEx plans

topped median exp, although the measure remains below the longer run average.

- Elsewhere, Japan's tax revenue (for FY19) fell for the first time in 3 years,

missing government estimates.

- 10-Year supply headlines locally tomorrow.