JAPAN: "*JAPAN ASKS OPENAI FOR MORE ACCESS TO ADVANCED MODELS: NIKKEI" bbg

• Widening pressure in OAT/Bund looks to have spilled over into broader EGB spreads today, potentially exacerbated by weak European equity sentiment (Estoxx 50 futures -0.6%) and tighter month/quarter-end liquidity dynamics.
• The 10-year BTP/Bund spread has moved above 100bps for the first time since H1 2025, now up 3bps today to 102bps.
• It’s notable to us once again OLOs are the 2nd biggest underperformer in the EGB space behind OATs. The 10-year OLO/Bund spread is now up 4.5bps to 76.2bps.
• For a better illustration of recent Belgian underperformance, the 10-year OLO/RFGB spread is up almost 20bps this month alone to 42bps. For context, Finland’s deficit in Q1 2026 (4Q rolling basis) was 4.0% (vs 5.2% in Belgium), while its debt/GDP was 89.7% (vs 109.1% in Belgium)

"US TREASURY SAYS WILL BUY UP TO $6 BLN OF 10-20 YEAR DEBT IN OCTOBER 1 LIQUIDITY BUYBACK" - Reuters

• +5,533 UXYZ6 105-08.5, buy through 105-08 post time offer at 1047:53ET, DV01 $443,000.
• The 10Y ultra contract trades 105-08 last (-1.5)