A strong round of 30-Year JGB supply saw.......>

JGBS: A strong round of 30-Year JGB supply saw futures trade back to virtually

unchanged levels in the early part of the Tokyo afternoon, before the bid faded

resulting in fresh session lows, although the range remained contained. Futures

last trade 10 ticks below settlement. The aforementioned auction saw the tail

narrow at the margin, cover ratio hold up and low price top dealer exp. after

some modest concession played out in morning trade.

- BoJ's Kuroda, PM Abe & FinMin Aso's respective addresses had no mkt impact.

- The following is worth highlighting: MNI understands that if the Bank of Japan

needs to resort to additional easing measures, it can go beyond the four

possible options previously laid out by Governor Haruhiko Kuroda, although

current conditions don't warrant any immediate policy action. Some BoJ officials

are concerned that talk of a fifth or even sixth policy option will have

financial market players in a frenzy of speculation over additional easing. We

understand that the Bank could strengthen forward guidance or conduct additional

money market operations, including long term liquidity injections, if required.

- Labour earnings data provides the highlight tomorrow.