Futures continued their move higher on.........>

JGBS: Futures continued their move higher on Thursday, finishing the Tokyo

session above the 200-DMA (150.61), although the overnight session saw the

contract back below this level. Bulls will look for a clean break higher to

allow them to target Fibonacci resistance 150.80.

- The curve finished flatter yesterday, with super-long paper outperforming,

while swaps ran wider as they lagged the move.

- There was little/no immediate reaction to the latest 2-Year JGB auction

yesterday, which saw the cover ratio move higher (perhaps aided by last week's

redemptions from 2-Year paper), while the low price was slightly higher than

expected in the BBG dealer poll.

- Nippon Life & Japan Post have both indicated that they would like 30-Year JGB

yields to top 1.00% before they become more active in the sector.

- Focus now turns BoJ Rinban operations covering 1-10 Year paper later today.