Friday provided a sedate session for the JGB...>

JGBS: Friday provided a sedate session for the JGB space, with yields edging

lower across the board after some early underperformance for 40-Year paper, as

month-end demand generally provided some support. Futures eased in night session

dealing as it became apparent that the BOJ has trimmed the number of purchases

of the 1-10 Year buckets in its September Rinban operations to 5 (prev. 6),

although the contract managed to recover as it became apparent that in all the

buckets where the Bank trimmed the number of monthly purchases, it also upped

the potential size of the purchases. The move may also be a result of calendar

effects i.e. a limited amount of eligible purchase days during the month of Sep.

- On Friday the BOJ left the size of its Rinban operations covering the 1-10

Year buckets unchanged. The offer to cover ratios of the operations are listed

below:

- 1-3 Year: 3.29 (prev. 3.71), 3-5 Year: 3.41 (prev. 2.84), 5-10 Year: 3.38

(prev. 2.91).

- Focus this week moves to addresses from BOJ's Kuroda & Kataoka, Rinban

operations & 10-Year JGB supply.