Sell Off Fades From Extremes Ahead Of Holiday

JGB futures lacked any real follow through during Tokyo trade, even as they threatened a meaningful break below the overnight lows, retracing from worst levels back into the overnight session range to finish -13 on the day. Cash JGBs were little changed out to 20 years, but biased marginally cheaper, 10s at ~0.115%, with eyes on the March '20 vol high at 0.125%. Ultra-long swap spreads were wider on the day, while 20s provided the weak point in cash trade. Local news flow remained light, with the BoJ leaving the purchase sizes of its 10-25+ Year Rinban ops unchanged, with offer to cover ratios nudging higher, but not meaningfully so. Japan will observe a market holiday on Tuesday.