Outperformance in the belly of the curve.......>

JGBS: Outperformance in the belly of the curve seems to be the order of the day

in early Tokyo cash trade, pointing to a futures driven move once again. Nothing

in the way of further super-long swap spread tightening, yet.

- Futures last +14, after failing to break above the overnight high in early

trade.

- Nikkei 225 trades 3.0% lower, with USD/JPY back to ~Y109.50 at typing, after

printing as low as Y109.34.

- FinMin Aso noted that he doesn't see the need to compile an extra budget at

present.

- Elsewhere, RTRS has just run comments from the Health Minister, who has said

that he will not rule out schools being closed for more than 1-2 weeks.

- Local data saw stronger than expected industrial production and retail sales

readings, a softer labour market report, and slowing across the Tokyo CPI

metrics (which also missed exp.)