Lead March JGB futures open slightly lower, weighed by oversupply fears on a planned supplementary budget. The contract is currently flat at 143.66. Japan's new finance minister said Wednesday that the government will not be bound by Y44 trillion limit for this FY JGB issuance. JGB market participants are not sure about the size of the extra budget, with some players still believing that the new administration will not take the risk of yield spikes by significantly increasing JGB supply, says Mitsubishi UFJ Morgan Stanley Securities senior strategist Naomi Muguruma. 10-year cash bonds have yet to change hands; Muguruma tips a 0.780%-0.795% range vs 0.785% on Wednesday.
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