Core Viewpoint - The Japanese Ministry of Finance will auction 4.3 trillion yen in treasury bills on July 25 [1] Group 1 - The auction amount of 4.3 trillion yen indicates a significant government effort to manage its debt and financing needs [1]

Core Insights - The U.S. Treasury's auction of government bonds continues due to ample market liquidity, leading to sustained weakness in overnight general collateral repurchase agreement (repo) rates [1] Group 1 - Overnight general collateral repo rates initially traded at 4.32% and 4.33%, with bid-ask spreads of 4.34% and 4.33% [1] - Analyst John Canavan from Oxford Economics noted that the cash in the overnight market remains abundant, putting continued pressure on repo rates [1] - The settlement of today's Treasury auction is expected to exacerbate the current situation regarding repo rates [1]