The long end of the JGB curve unwound its......>

JGBS: The long end of the JGB curve unwound its early, modest underperformance

on the back of a solid enough round of 20-Year supply, which allowed the curve

to flatten on the day. The upsized auction was pretty non-descript, with the

cover ratio and tail width near enough steady when compared to the prev. 20-Year

auction. The only point of note was that the low price topped dealer exp., as

proxied by the BBG poll. Futures ticked higher alongside the long end, with the

contract last +7.

- Elsewhere, the latest Tokyo daily COVID-19 case count stood around ~270, with

officials once again playing down the need for an imminent state of emergency

declaration.

- In local news flow the Nikkei has suggested that the Japanese government plans

to lift its economic assessment in its July release. Elsewhere, the Nikkei's

latest survey has noted that "the majority of Japanese companies CEOs expect the

economy to take at least two years to recover from the fallout of the

coronavirus."

- Local data provided no impetus, as CPI printed virtually in line with exp.