*Correct* (Changed tag from AUSSIE BONDS) -....>

JGBS: *Correct* (Changed tag from AUSSIE BONDS)

- Futures moved higher from the open, but closed off of session highs, up 11

ticks at 150.87, as technical resistance came in to play.

- JGBs were supported by a stronger JPY & risk aversion, which weighed on the

Nikkei 225.

- The short end continued to underperform, although shorter dated yields did

manage to edge lower in afternoon dealing.

- The offer to cover ratio in the 10-25 Year Rinban operations was broadly

stable, while the average spread moved further in to negative territory i.e.

above market price, while the offer to cover ratio in the 25+-Year bucket ticked

higher which added some pressure to the super-long end in afternoon dealing.