Futures threatened to break below the..........>

JGBS: Futures threatened to break below the overnight low in early afternoon

trade on Wednesday, but bears failed. Broader market focus fell on growing

optimism surrounding the U.S.-China vice-ministerial trade talks. The contract

had a look below the aforementioned session low in overnight trade, but finished

off of worst levels in a limited session.

- Yields were virtually unchanged across the majority of the curve, although

10-Year paper experienced some modest underperformance, last 0.032%.

- The BoJ left the size of its 5-10 Year & JGBi Rinban ops unchanged today.

Offer to cover ratios were as follows: 5-10 Year 3.28 (prev. 2.37), JGBis 5.48

(prev. 6.73).

- The BoJ will take some solace in real wage growth moving into positive

territory, although average wage growth was boosted by bonuses and other special

pay.

- Focus falls on 30-Year supply, due later today.