A quiet session for JGB's, with markets........>

JGBS: A quiet session for JGB's, with markets ignoring the industrial production

data early in the session ahead of the BoJ August buying operation plan.

- Industrial production rose 1.6% on the month in June, in line with market

expectations. METI maintained their outlook that that momentum in the sector is

picking up. 

- The BoJ purchases 10-25 and 25+ Year JGB's, all sizes were kept unchanged

ahead of the August buying op plan. The ops were taken down smoothly, with the

superlong sector cover strengthening.

- JGB's saw some weakness in the afternoon session, selling off as the Nikkei

retraced its losses, while US tsys also came off highs.

- Moves were subdued, JGB futures head into the close down 4 ticks at 150.15,

having moved in an 8 tick range, volumes were thin at around 60% of the average.

Yields head into the close slightly higher, the 10-Year +0.2bp at 0.078% with

sellers cropping up ahead of tomorrow's 10-Year auction.

- The new Tibor calculation method was finally evident, the rate jumping to

0.075% from 0.056% which sparked selling in Euroyen futures.