Very Little to See Here

JGB futures stuck to a narrow range, briefly extending on the gains lodged in the final overnight session of last week, with little to go off outside of the previously flagged potential for an extension of the state of emergency in play across various regions of Japan (which would likely bring the expiry of the restrictions in play across most regions in line with the expiry of the restrictions in the Hokkaido region). Futures last print 5 ticks above Tokyo settlement levels, with the major cash benchmarks little changed to 1.0bp richer across the JGB curve.

• Elsewhere, the BoJ conducted its scheduled round of 1- to 5-Year JGB purchases, leaving the purchase sizes unchanged, with no movement in the offer to cover ratios observed vs. prev. ops covering the buckets in play.
• Tuesday's local docket will be headlined by machine tool orders data and a liquidity enhancement auction for off-the-run JGBs with 5- to 15.5-Years until maturity.