Futures stuck to a tight range and......>

JGB SUMMARY: Futures stuck to a tight range and finished off of best levels, at

150.99 (+9 ticks). The curve bull steepened as China's first stage of

retaliation against the US tariffs were outlined, and as the US installed a

defence hawk as National Security advisor.

- The Nikkei 225 shed nearly 5% at one point, while the USDJPY cross

consolidated below 105.00 as amid broad risk off flows.

- This allowed the JGB curve to steepen as short dated paper came under

pressure, despite a smooth batch of 1-5 Year Rinban operations from the BoJ.

- FY flows remain at the fore, which are expected to support the long end, with

10-Year yields hitting 4-month lows.

- Futures' recovery from the 200-DMA test that defined last week is now gaining

traction above the 21-DMA (150.92) with bulls now focused on a test of 151.13-19

where the Bollinger top, 2018 high and Nov monthly high are located. Bears now

need a close below 150.95.