Off BoJ Inspired Lows In Wake Of 10-Year Supply

The JGB space played catch up to the BoJ's April Rinban plan in early Tokyo trade, after the Bank noted that it will remove Y550bn of conventional JGB purchases in April vs. March, with some pre-auction concession also built in. There was some respite in the wake of the latest 10-Year JGB auction, which saw the low price top dealer estimates, with the tail narrowing and cover ratio moving higher, although the latter continues to operate within the lower end of its recent range (the metric observed at last month's auction provided a low bar to hurdle given the fact that it represented a multi-year low). JGB futures -12 on the day at typing, with the cash curve a little steeper (30s provide the weak point, cheapening by 2.0bp on the day).

• The Q1 BoJ Tankan survey generally revealed inline to stronger than exp. metrics, which were more favourable than Q4's offering.