10-year futures trade at 150.43, remaining.....>

JGBS: 10-year futures trade at 150.43, remaining above Monday's high of 150.40,

which will now act as support and coincides with the 21-DMA. The bulls are now

firmly in charge as the July 31 high of 150.80 now comes into play. 

- Adjusted export growth came in at 3.9% Y/Y in July, down from 6.7% in June and

underperforming expectations, which may have helped the space. 

- The strength is coming amid a slight recovery in breakevens, which have risen

back to 42.9bps at the 10-year level, seeming to suggest that expectations of

BOJ tightening are being unwound. 

- Correlations between Japanese and US bonds have begun to pick up in recent

sessions, which are also showing a renewed increase in correlations with US

stocks.