After starting the Tokyo session lower.........>

JGBS: After starting the Tokyo session lower following US Tsys, JGB's touched

session highs and highest levels seen since the roll over of this contract at

150.96, currently up 8 ticks but 2/3 of the way through the session rose 15

ticks, the ascent was triggered by the reports from N. Korea's Yonhap that Kim

Jong-Un's response to further US sanctions could include a hydrogen bomb test.

The upside took out some of MNI technical levels, one at 150.9 which last saw

hourly support September 1 and is now a resistance level, current JGB price at

150.86 still takes out resistance level of 150.84, which was highest last on

September 20. 

- Enhanced liquidity auction for 5-15.5 years so weak results, lower bid to

cover at 2.82x and more allotted at the high spread. This was contrary to

expectations and sparked a sell off in the afternoon session. All yields are

currently down post auction, by no more than 1.0bp in the long end 40-Year, the

10-Year yield currently down 0.5bp.

- The BOJ purchased Y1tln bills in their purchase operations today, they skipped

operations last Friday but bought Y1tln on Tuesday this week.