Another very quiet session for JGB's,..........>

JGBS: Another very quiet session for JGB's, futures opened flat and moved in a 2

tick range for the morning session. Futures caught a bid in the afternoon and

ground out some gains, last up 6 ticks at 151.03. Session high was at 151.05,

just below the 151.07 Nov 8 high resistance.

- Comments from Japanese PM Abe supported JGB's, Abe said that the BoJ decided

policy independently and that they should continue to do utmost to reach

inflation target.

- The MOF sold 5-15.5 Year debt in an enhanced liquidity auction, the auction

was taken down smoothly with lower spreads but a slightly lower coverage ratio.

- Yields mixed, the belly seeing some buying after the liquidity auction, while

the short end sees buying ahead of 1-10 Year BoJ purhase operation tomorrow.

10-Year yield last down 0.8bp at 0.030%, curve seeing some bull steepening.

- ASW outperformed JGB yields, 30-Year ASW cheapening 0.4bp to L-1.7bp. 10-Year

ASW richened by 0.5b to L-20.6bp.