A sedate morning session for futures, with.....>

JGBS: A sedate morning session for futures, with liquidity thinned around the

Golden Week holiday period. The contract held a tight range, going into the

lunch break 9 ticks above settlement levels, with bulls unwilling to force a

test of 153.00. Cash trade saw light twist flattening of the curve, with swap

spreads generally tighter out to 20 Years, wider further back.

- Little to note outside of the ongoing debate re: the extension of the national

state of emergency, downbeat rhetoric from PM Abe and weak domestic data.

- Month-end extension flows are projected at the lighter end of the average

range.