Another quiet session with thin volumes for....>

JGBS: Another quiet session with thin volumes for JGB's, futures close down 20

tick at 150.76. Only 3.8k contracts changed hands against a contract average of

around 30k. JGB volatility index ticks slightly higher to 1.49, thin volumes

exacerbating moves.

- After rising at the open alongisde a fresh bid in UST's after reports that the

House would have to vote on a slightly amended tax bill again due to some

procedural errors in the first version of the bill. After peaking at 150.88 JGB

futures dropped to session lows of 150.73. MNI technical analysis now sees

support at 150.70 after taking out the December 5 low at 150.75.

- Before market the BoJ published flow data, BoJ JGB holdings rose to a record

40.9% of all outstanding issues at Y445tln. 

- The BoJ bought 1-5 and 10+ Year JGB's, the operations were taken down

smoothly, offer/cover were broadly in line with previous operations, but spreads

rose in the long end which put extra selling pressure on JGB's in the afternoon.

10-Year yield rose to 0.061% approaching the highest levels since early

November. 2-/30-Year spread 0.7bp wider.