A limited session for JGBs with futures........>

JGBS: A limited session for JGBs with futures sticking to a tight range, holding

above 151.00, with little in the way of catalysts apparent to give the contract

any impetus in either direction.

- The cash curve unwound its modest early flattening in the afternoon session,

as the Nikkei punched fresh session highs.

- Little/no immediate reaction in benchmark paper/futures to the latest 5-15.5

Year liquidity enhancement auction for off the run paper.

- Japanese CPI releases were in line with exp., with no notable market reaction.

- The Nikkei reported that Japan will spend >Y2.0tn to mitigate the effects of

the planned sales tax hike, due in 2019. Elsewhere, NHK suggested that the

government is eying a 5 ppt rebate 9 months after the scheduled sales tax goes

into play.

- As a reminder Japan observes a market holiday on Friday.