Futures saw an uptick in early dealing,........>

JGBS: Futures saw an uptick in early dealing, recovering from the overnight

lows, perhaps on the lack of fresh hawkish information in the summary of

opinions from the BoJ's Jul MonPol decision, with only 1 member voicing support

for a -/+0.25% 10-Year JGB yield range (BoJ's Amamiya had previously pointed to

marginal differences in opinion at the meeting).

- The BoJ left the size of its Rinban operations covering the 1-10 Year buckets

& JGBis unchanged in today's ops, with no large swings in the offer to cover

ratios.

- The cash curve is a little steeper, with the long end underperforming ahead of

tomorrow's 30-Year supply. 40-Year yields are now testing 1.00%. Tomorrow's

auction will be integral to the short term outlook for the longer end of the

curve, and may have knock on effects in global bond markets.

- Swaps out to 10-Years have tightened on the back of Samurai hedging.

- Initial resistance in futures comes in at the spike low from Jul 31 (150.24).

The recovery has lacked impulsiveness thus far, while momentum indicators remain

bearish. 149.95 acts as initial support.