Futures moved higher from the open and went....>

JGBS: Futures moved higher from the open and went in to the lunch break 12 ticks

better off at 150.88.

- The short end continued to underperform, with 4- to 20-Year paper ticking

higher on the day.

- During the lunch break we have seen that the offer to cover ratio in the 10-25

Year Rinban operations was broadly stable, while the average spread moved

further in to negative territory i.e. above market price. The offer to cover

ratio seen in the 25+-Year bucket ticked higher which could pressure the

super-long end this afternoon.

- From a technical perspective bulls take comfort in the 200-DMA supporting and

the recovery that sees initial focus on 150.87-90 (where we last trade) where

the Bollinger band top and 21-DMA are situated. Bulls now need a close above

150.90 to shift initial focus to 151.06 and overall focus to 151.15-21 where

2018 and Nov highs are situated. The 150.55 support remains key with bears

needing a close below to shift initial focus to 150.36 and overall focus back to

150.08-09 where 2018 and Oct lows are noted.