Futures have continued their move higher,......>

JGBS: Futures have continued their move higher, breaking above the 200-DMA

(150.61) this afternoon, with bulls looking for a close above to allow them to

focus on Fibonacci resistance at 150.80.

- The curve sits flatter, with super-long paper outperforming, while swaps have

run wider as they lagged the move.

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

- Early option flow was noted in the JBZ8 149.50/150.00/150.50 put fly, talk of

the structure being bought in 1.0K.

- Focus now turns BOJ Rinban operations (Friday).