A quiet session for JGB's, futures close.......>

JGBS: A quiet session for JGB's, futures close flat at 150.48, gaining a modest

8 ticks in the afternoon alongside UST's after seeing directionless trade in the

morning. Yields were broadly flat, the 10-Year yield down 0.2bp at 0.075%,

retreating slightly further from the tacit 0.10% BoJ intervention threshold.

- Pre-open in Tokyo Japanese wage data was released, the headling posting the

5th straight rise but real wages dipped as the increases lag inflation. Japanese

policymakers have been urging firms to share more profits with workers but firms

are generally cautious about raising base wages amid uncertainty over the

outlook for global and domestic demand. Later in the session BOJ supply-side

Consumption Activity Index released Wednesday showed a slight gain in the final

quarter of 2017, indicating that private consumption supported sustained Q4

economic growth in GDP data due next week.

- The BoJ purchases 1-10 Year JGB's and inflation linked bonds, the operations

saw slightly higher bid/cover ratios but within recent ranges. JGB's have been

more immune to the recent global rout, markets convinced that the BoJ stand

ready to step in.