Super Long End Bid After Solid 30-Year Auction

The broader JGB space saw a brief bid kick in after the well-received round of 30-Year JGB supply. The low price comfortably topped broader expectations (which stood at 100.35 per the BBG dealer poll), while the cover ratio ticked higher and the tail narrowed. Futures unwound a chunk of their overnight/morning weakness to last print -17 vs. settlement, just off worst levels of the day, while super-long JGBs held on to their post auction bid, printing a little richer on the day. This came after some modest weakness during the Tokyo morning, in addition to signs of some paying flows in the super-long end of the swap curve ahead of supply.

• Looking ahead to the BoJ's incentivisation scheme surrounding the fight against climate change, BBG have highlighted that "BoJ officials want to avoid getting bogged down in trying to differentiate between green projects, according to people familiar with the matter."
• Local wage data provided a modest disappointment vs. broader expectations, accompanied with revisions lower for the previous month. Elsewhere, domestic household spending data topped exp. at the margin.
• Looking to tomorrow, the local docket will be headlined by the latest round of BoJ Rinban operations.