A sharp move lower in JGBs saw a brief.........>

JGBS: A sharp move lower in JGBs saw a brief breach of the YtD lows for JGB

futures, which finished the morning session 20 ticks off of the lows.

- There was no particular fresh catalyst for the move, but the space has eased

since Kuroda suggested that yields would be allowed to fluctuate by around

double the amount that was previously prescribed in his press conference Tuesday

- Short positioning into the BOJ decision may have exacerbated the bid on

Tuesday.

- The latest BOJ Rinban ops saw the Bank leave the size of the operations

covering the 1-3 & 3-5 Year buckets unchanged. Looking at the breakdown of the

operations, the offer to cover ratio of the 1-3 Year bucket ticked up to 3.77

from 3.35, while the 3-5 Year bucket's offer to cover ratio rose to 3.01 from

1.93.

- JGB bears look for a close below the 02 Feb 2018 low (150.09) in futures.