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Japan To Observe Holiday


Flattening Extends


Liquidity Sapped By Local Holiday


AUD Edges Lower After Volatile Wednesday


(Z1) Bearish Trend Condition


U.S. Tsys Help Futures To Twist Flatten Overnight

JGBS: Futures finished 4 ticks higher at 151.03, as the domestic curve
flattened, with yields on bonds from 7-Years out softening modestly on the day.
- JGBs pulled back from opening highs inspired by the Cohn/US-China trade
headlines as the Nikkei 225 briefly moved into positive territory.
- The BoJ left the amounts in today's Rinban operations steady. The offer to
cover ratio ticked higher in the shorter dated 1-3 Year bucket, it remained
steady in the 3-5 Year bucket & fell in the 10-25+ Year buckets.
- Incoming BoJ Deputy Gov. Wakatabe highlighted various ways in which the BoJ
could further ease policy, but said he has no pre-commitment to looser policy.
His fellow incoming Deputy Gov Amamiya offered little fresh insight.
- Last week's volatility has resulted in pressure returning to the 151.17-19
region where the Bollinger band top is situated. Bulls continue to look for a
close above 151.19 to initially target 151.51 2017 highs. The Bollinger band top
is the key concern for bulls with potential to limit follow through. Bears now
need a close below 150.89 to ease bullish pressure and below 150.47 to target
2018 lows.
MNI London Bureau | +44 0203-865-3809 |