Futures slid to a fresh session low after......>

JGBS: Futures slid to a fresh session low after the BOJ didn't offer a fixed

rate operation in the 10-Year cash space, after rumours that such an operation

would take place. 10-Year JGB yields briefly traded above 0.11%, the typical

fixed rate the BOJ offers on such operations, adding further credence to recent

reports/analyst calls that the BOJ may adjust the upper bound of its yield

target corridor for 10-Year JGBs at its MonPol decision next week.

- 10-Year cash JGB yields last at 0.108%, with futures entering the lunch break

5 ticks off of worst levels.

- The BOJ left the size of its Rinban covering the 1-10 Year buckets unchanged

at today's operations. Looking at the breakdown, the offer to cover ratio of the

1-3 Year bucket eased to 3.35 from 4.41, while the offer to cover ratio of the

3-5 Year bucket tumbled to 1.93 from 3.44, while the offer to cover ratio of the

5-10 Year bucket ticked up to 3.25 from 2.95.

- Hourly support from July 24 in futures is noted at 150.45, which held earlier

on, and represents the session low, with any break opening up a move to the Feb

01 high (150.36).