A round trip for JGB's today, after.....>

JGB SUMMARY: A round trip for JGB's today, after opening at 150.78, 7 ticks

higher than the Tokyo close but 4 ticks lower than the overnight close after

gains in the US session on Friday, JGB futures initially dropped alongside US

tsys, catching up with the move after WH strategist Bannon parted ways with the

Trump administration. After touching lows of 150.69 JGB futures bounced and head

into the close at 150.78 as traders took note of risk off sentiment in the

afternoon with the Nikkei just off session lows with the US and South Korea set

to hold military drills on the Korean peninsula. 

- Yields are little changed heading, the 10-Year yield last at 0.035% up 0.2bp.

Yields initially opened higher pressured by the sell off in futures but the move

was pared on the afternoon recovery. Sources note that at these yield levels

(namely below 0.05% in the 10-Year) the sector is unattractive to buy and hold

investors which has seen heavy receiving in swaps in 5-10 Years. Bill yields

finished higher on Friday with some suspecting window dressing for dealer

inventories, this move was reversed, though moves were uneven with several

issues resisting the sell off due to Y3.13tln of bill redemptions today.