The JGB curve was steeper after early..........>

JGBS: The JGB curve was steeper after early underperformance in the belly.

- The Japanese gov't approved a record budget spending plan of Y102.7tn for the

coming fiscal year, with general bond issuance being reduced for a 10th straight

year, although 40-Year JGB issuance has been nudged up to Y3.0tn for the FY.

These figures are in line with media reports made earlier this week, but still

managed to pressure futures, which closed 25 ticks below yesterday's settlement.

- There was no real impact from the monthly CPI data which was virtually in line

with exp. across the board.

- The latest 5-15.5 Year JGB liquidity enhancement auction saw tighter 5-15.5

Year spreads.

- Monthly department store sales were lower in Y/Y terms, as the effects of the

sales tax hike continue to be felt.

- Finally, data revealed that the BoJ held 43.85% of JGBs at the end of Q3.