A very subdued session to end the week for.....>

JGBS: A very subdued session to end the week for JGB's, markets ignoring the

month end data dump and BoJ Summary of Opinions. 

- CPI data was broadly in-line with estimates, the core measure slightly above

estimates at 0.0%, but confirmed the weak inflation trend. Other data was more

positive, the jobless rate dropped to 2.8% from 3.1% matching multi year lows

while household spending rose strongly at 2.3%, eclipsing he 0.5% estimate.

- The Summary of Opinions was more of the same, the last meeting featuring

perennial dissenters Kiuchi & Sato, essentially a repeat of previous meetings.

- The BoJ purchase operations were in-line with previous, despite some chatter

of a possible reduction in the 5-10 Year maturity. The sector operation was

reduced by Y30bln last week after a Y50bln increase earlier in July.

- JGB futures moved in a 3 tick range and head into the close at 150.17 matching

the session low. Yield curve steepened as the short end is supported by a drop

in stocks as several cabinet members resign. 10-Year yield last +0.5bp at

0.075%. Some short end issues seeing a repo squeeze on smaller than usual SLF.