A quiet start for JGB futures after the........>

JGBS: A quiet start for JGB futures after the overnight sell-off with the

contract operating off of worst levels, last trading 12 ticks below settlement.

- The yield curve has bear steepened on the back of the latest adjustments to

the BoJ's Rinban operations and move higher in USD/JPY, with the Nikkei 225

+0.7% at writing.

- Elsewhere, some of the headline hard data was stronger than exp., with CapEx

plans topping exp. & Tokyo CPI largely beating exp. The latest labour market

report painted a pretty consistent picture when compared to the prior print.

- The final Nikkei manufacturing PMI print edged up to 48.9 from a flash reading

of 48.5, as the text accompanying the print warned that "with the consumption

tax hike set to come into play later this year, weak domestic demand will only

heighten fears that the economy could be poised for a downturn. Focus turns

towards service sector data, which will need to show signs of resilience in

order to offset the manufacturing drag."