Another uneventful session for JGB's ahead.....>

JGBS: Another uneventful session for JGB's ahead of key data releases on

Wednesday. Futures caught a bid at the open on dovish comments from BoJ members.

After opening Tokyo at session lows of 150.62 BoJ Gov. Kuroda said that the BoJ

would continue to pursue powerful monetary easing, and there was still a long

way to go until the 2% inflation target was hit. BoJ's Sato contributed to the

dovish sentiment saying that the BoJ needs to continue their low rate policy. 

- A dovish report from Goldman Sachs is also helping to support JGB's. Goldman's

say that while the inflationary environment is improving, easy policy is still

needed to hit the 2% inflation target, especially considering the possible

negative effects of a sales tax hike in 2019.

- The 5-Year JGB was taken down smoothly as expected. The issue was covered

4.19x (prev. 4.24x) with a tail of 0.01. Sources note the auction was supported

by foreign bids as USD/JPY basis swaps drop to the lowest level in 9 months,

while domestic demand was spurred by the recent yield concession.

- JGB futures retrace overnight losses to end flat at 150.71, 10-Year yield last

+0.4bp at 0.054%.