Mostly Firmer Despite BoJ Rinban Tweaks

There was not much in the way of local follow through in the wake of Tuesday's tweaks to the BoJ's Rinban purchases for the coming quarter, with most of the cash JGB curve sitting flat to a touch firmer on the day. 20s & 40s are the only major benchmarks that sit cheaper vs. Tuesday's closing levels at typing (to the tune of ~0.5bp).

• A reminder that most view the tweaks to the Rinban operations (including the release of a quarterly schedule) as a way of promoting the functioning of the JGB market, as opposed to a policy signal. Futures have held to a tight range, last printing -2 vs. yesterday's settlement level, gradually unwinding the overnight downtick as we moved through the day.
• A RTRS source report noted that "Japan's tax revenues likely exceeded Y60tn to a record high in the year that ended in March despite the blow to the economy from the COVID-19 pandemic. The bumper tax revenue could ease concerns about the coronavirus-hit to state coffers, possibly fuelling calls for further fiscal stimulus even though massive COVID-19 spending rolled out last year has added to the industrial world's heaviest public debt burden. The amount was bigger than the government's initial estimate of Y55.1tn."
• The Q2 BoJ Tankan survey and 10-Year JGB supply will headline locally on Thursday.