Futures gave back their overnight gains........>

JGBS: Futures gave back their overnight gains during the Tokyo morning, but came

off worst levels, heading into the lunchbreak unchanged vs. yesterday's

settlement.

- Cash trade saw light outperformance in the belly, with yields a little cheaper

across the curve.

- The swap curve has seen some twist flattening.

- The BoJ left the size of its 1-5 Year Rinban ops as was. The 1-3 Year bucket

saw little movement in spreads as the offer/cover ratio nudged higher, while the

3-5 Year ops saw a tightening in spreads vs. prev. ops, as the offer/cover

nudged lower.

- BoJ Governor Kuroda and board member Adachi offered little new in their

respective comments.

- Tokyo CPI met exp. across the board.

- 3-Month bill auction results due shortly.