Super Long End Richens, 20-Year Supply Eyed

A narrow morning for JGB futures, with the contract generally sticking to the upper half of the overnight session's range, hitting the break 4 ticks below yesterday's settlement level. 30+-Year paper has richened by ~2.0bp, with the remainder of the cash curve unchanged to marginally richer on the day. Local headline flow has been extremely limited to non-existent, with the latest round of weekly international security flow data revealing ~750bn of net purchases of Japanese paper by foreign investors (which partially unwinds the large net selling seen in the previous week and coincides with the short-term top in JGB yields). 20-Year JGB supply headlines locally this afternoon.