Solid 10-Year auction PRovides A Bid In The Afternoon

JGB futures last +11, rallying to best levels in the wake of the latest round of 10-Year JGB supply, which was fairly bland, but represented a smooth absorption.

• In terms of auction specifics, the low price matched dealer estimates, as proxied by the BBG dealer poll, while the cover ratio held steady and tail widened marginally vs. prior auction. The % allotted at the high yield also edged higher.
• 7-10 Year sector outperformance was seen in the afternoon, as the sector rallied out of auction, although 5s were firmest on the day.• Tokyo CPI metrics were a touch stronger than expected across the board, but the three major measures were still nowhere near challenging 1.0% in Y/Y terms.
• BoJ 3-5 & 10-25 Year Rinban ops are due Wednesday.