Friday saw JGB futures move sharply away.......>

JGBS: Friday saw JGB futures move sharply away from best levels on the back of

BBG BoJ source reports which suggested that some at the BoJ are said to see the

10-Year yield limit somewhere higher than +0.2%, with BoJ officials said to not

want sharp 10-Year yield volatility according to the sources.

- Futures quickly pared the move with the market wary ahead of this week's BoJ

MonPol decision, as broader risk-off flows dominated into the close, supporting

JGB futures through the overnight session.

- The belly of the curve underperformed in cash trade.

- The BOJ left the size of its Rinban operations covering 1-10 ~Year operations

unchanged on Friday, the offer to cover ratios can be seen below.

- 1-3 Year 2.58 (prev. 3.64), 3-5 Year 1.78 (prev. 2.21), 5-10 Year 2.60 (prev.

1.70).

- Focus this week turns to the BOJ's latest MonPol decision, with industrial

production and labour market data also due, in addition to Rinban operations &

10-Year JGB supply.