That Holiday Feeling

JGB futures added to overnight losses in Tokyo trade, last -10. Cash trade saw yields little changed to a touch higher across the curve, given the move in futures since yesterday's close.

• A well-received round of 2-Year JGB supply saw the tail narrow when compared to the previous auction, with the cover ratio moving higher and low price topping broader expectations.
• Reports from TV Asahi suggested that the Japanese government is considering raising the cap of subsidies it pays to large commercial facilities cooperating by shutting their doors during the COVID state of emergencies evident across regions of Japan. Suggestions point to this equating to Y500bn, which will be drawn from the reserve fund.
• A reminder that the BoJ's Rinban schedule for May will hit after hours today, with participants seemingly eying the Golden Week holiday exit. The holiday period gets underway on Thursday, although markets will be open on Friday, with the usual month end domestic data dump due. Markets will then be closed Monday through Wednesday.