Futures continued to fade after the early......>

JGBS: Futures continued to fade after the early shunt higher at the Tokyo

re-open, even after the BoJ upped the size of its 5-10 Year BoJ Rinban

purchases, with the global risk dynamic slowly reversing some of the impetus of

any local "bargain hunting" after the recent sell off.

- Contract last -18 ticks vs. settlement levels, still off overnight lows.

- 20- & 30-Year LCH/JSCC spreads are stable today after foreign paying seemingly

helped to drive long end swaps and JGB yields higher earlier this week (as

flagged at the time). Swap curve still steeper today, suggesting domestic

players are at work on the back of the latest round of risk-positive flows.

- 2s & 3s outperformed all day, but sit back from richest levels, with the rest

of the curve cheapening as we moved through the session.

- BoJ Rinban ops saw the 1-3 Year offer/cover ratio tick higher and spreads

widen vs. prev. ops, while 3-5 Year ops saw the offer/cover nudge higher and

spreads little changed, with the 5-10 Year ops seeing the offer/cover ratio

moderate (as op sizes increased), with spreads little changed vs. prev. op.