Futures operated in a tight range and..........>

JGBS: Futures operated in a tight range and finished 3 ticks higher at 150.90.

- The 5-20 Year sector of the curve outperformed, as the BoJ's 5-25+ Year Rinban

operations passed smoothly, with the offer to cover ratio stable in the 10 Year+

buckets, while the 5-10 Year bucket's offer to cover ratio reverted, after the

move higher in the operations conducted earlier this week.

- 3-Month cross currency JPY basis has tightened, pointing to repatriation flows

ahead of FY end.

- For JGB futures the recovery from 200-DMA tests that defined last week is

struggling with follow through lacking above the 21-DMA. Bulls need a close

above 150.97 to confirm focus on layers of resistance 151.15-19. The contract is

looking a little heavy with the 21-DMA capping and hints at a correction

initially targeting 150.62-73 where key DMAs are clustered. Below 150.55 is

needed to target 150.36 and then 150.08-09 where 2018 and Oct lows are noted.