A bit of a roller coaster session for JGB......>

JGBS: A bit of a roller coaster session for JGB futures after the long holiday

weekend, with the return of the geopolitical risk premium allowing futures to

quickly reverse the losses sustained in the final overnight session of last

week. The contract then eased back from best levels in the afternoon, to last

trade 2 ticks lower on the day.

- The early, modest bull flattening gave way in the afternoon, with yields last

little changed.

- The BoJ left the size of its 1-5 Year JGB purchases unchanged vs. the previous

operations. The 1-3 Year operations saw an offer to cover ratio of 3.35x (prev

2.21x) while the 3-5 Year operations saw an offer to cover ratio of 2.79x (prev.

2.72x). The average spreads across both buckets moved back into negative

territory.

- 20-Year supply and monthly trade balance data headline the local docket

tomorrow.