Barclays write "we believe yields will show....>

JGBS: Barclays write "we believe yields will show a downside bias until

month-end, driven by a favorable supply-demand balance and the 10-day Golden

Week holiday, but we also see a need to hedge against the risk of JGB yields

rising with global yields over the short term. In order to prepare for this

scenario while also taking a long position in the 20y sector ahead of tomorrow's

auction, it is essential to adjust flexible hedge ratios, in our view. The

results of our principal components analysis (PCA) suggest a JGB 10s20s30s

butterfly trade built with a neutral weighting for principal components to hedge

against the risk of yields rising in the short term could earn income on the

outperformance of 20s. If yields fell, on the other hand, any underperformance

of 20s could be limited by lowering the weight of shorts in the high-convexity

30y sector."