Narrow Morning, 5-Year Supply Slated

JGB futures retraced into the overnight range after a brief look above at the re-open, with a lack of fresh tier 1 headline catalysts observed. Plans to extend the state of emergency in play across 19 prefectures were confirmed by Economy Minister Nishimura after press reports pointed to such a move overnight.

• That left futures +3 vs. settlement come the lunch bell. Cash JGB trade sees the major benchmarks little changed to nearly 1.0bp richer, with the long end of the curve outperforming.
• The futures roll continues to be driven by sellers, with ~10K of the ~12K lots dealt during the Tokyo morning trading on the bid side, almost exclusively given at 0.03.
• 5-Year JGB supply headlines this afternoon.