Futures edged higher this morning, finishing...>

JGBS: Futures edged higher this morning, finishing the session at 150.89 (+2

ticks), while super-long paper experienced some modest underperformance in cash

dealing. The 5-Year sector outperformed heading into today's 5-Year JGB supply.

- Swaps were a tighter from 7-Years out, while shorter maturities were mixed.

- The modest JPY uptick has supported the space, while the Nikkei went into the

lunch break virtually unchanged.

- From a technical perspective JGB futures 151.06 resistance confirmed

significance with gains defining last week largely negated by the rejection

ahead of this level. Yesterday's close below 150.85 had left the contract

looking week, although buyers stepped in this morning. Bears now look for a

close below 150.70, with various moving averages layered in from 150.78. Bulls

now need a close above 151.06 to confirm a shift in focus to 151.15-21.