A strong bid came into the space, that some....>

JGBS: A strong bid came into the space, that some linked to cash, allowing JGB

futures to extend on the already minted fresh all-time highs.

- The contract closed 45 ticks higher, just shy of the intraday peak, with

aggressive moves in the cash space leading to bull flattening of the curve.

- The BoJ left the size of its 10-25+ Year JGB purchases unchanged, with the

offer to cover ratio rising for the 10-25 Year bucket and edging lower for the

25+ Year bucket. The average yield spread moved further into negative territory

for both buckets, this may have supported the move in the afternoon, with the

space already well bid in the morning on the back of the weekend's Sino-U.S.

trade developments.

- Tomorrow's local docket is very limited.