Tight Ahead Of Supply

A mundane morning session saw JGB futures hit the lunch break 1 tick above yesterday's settlement level after a brief look below their overnight low, while cash JGBs were little changed out to 20s, as 30s and 40s richened by ~0.5bp. Headline flow has been light, with LDP Party leadership hopeful Kono pointing to an inability to alter monetary policy while the economy fights off the impact of COVID, as well as a willingness to debate the proper measures to close the country's GDP gap. 20-Year JGB supply headlines this afternoon. JPY-denominated corporate issuance has been headlined by JRTT mandating banks for a multi-tranche round of sustainability bonds.