Soft Japanese Q4 GDP data supported JGBs,......>

JGBS: Soft Japanese Q4 GDP data supported JGBs, with the impact of the well

documented sales tax hike and natural disasters stealing the headlines. The

print represented the sharpest contraction since Q214, when GDP fell an

annualized -7.4% in the wake of previous sales tax hike.

- Contract last prints +8, 6 ticks off the morning highs, with the long end

leading the way in cash trade as the curve bull flattened.

- Comments from EconMin Nishimura & BoJ Governor Kuroda revealed little new,

with an obvious focus on the impact of the sales tax hike evident for the

former, while both touched on the lack of clarity surrounding the impact of the

Coronavirus, yet again.

- 5-Year supply headlines tomorrow's local docket.