Another fairly sanguine session for JGB's......>

JGBS: Another fairly sanguine session for JGB's despite some price swings in

UST's early in the session. JGB futures head into the close down 4 ticks at

150.44. Data earlier in the session was largely ignored, Japanese sold foreign

bonds for the 3rd consecutive week to the tune of Y353.1bln, while Current

Account data showed a slightly narrower surplus than expected. 

- BoJ's Suzuki spoke, espoused more of the same: Japan is making progress

towards the inflation target but there is still some way to go and easing must

continue. Suzuki did not the possibility of a change in the YCC target to

increase sustainability of the programme. BoJ Governor Kuroda also spoke and

again confirmed that powerful easing would continue, but said that purchases

will change depending on market conditions.

- The MOF sold 30-Year debt, the sector saw some concession pre auction which

resulted in a strong takedown. The sale was covered 4.27x at 0.82%, tail dropped

to 0.05 from 0.13 previously.

- Yield curve steepened with the exception of the 30-Year. 10-Year yield up

0.5bp at 0.08%, 2-/20-Year spread 0.9bp wider.