Activity in JGB futures was limited in Tokyo...>

JGBS: Activity in JGB futures was limited in Tokyo hours, with a couple of

failed attempts at topping the overnight high noted. Contract last +2.

- The belly lagged in cash trade, with strength in the long end seen in the wake

of the latest 20-Year auction.

- In terms of auction specifics, things were solid enough on the price side as

the tail tightened vs. prev. auction and low price topped dealer exp., proxied

by the BBG dealer poll (100.15), but the cover ratio softened to levels more in

line with the recent averages after the uptick at last month's auction.

- Elsewhere, backwards looking data from the BoJ revealed that the Bank held

44.2% of JGBs at the end of March, with foreigners holding 12.9% of JGBs at that

time.

- Weekly international security flow data noted that Foreigners flipped to net

buying of Japanese bonds in the most recent week covered, scooping up a net

Y261.4bn after 2 consecutive weeks of net selling.