Futures went into the lunch break at 150.87....>

JGBS: Futures went into the lunch break at 150.87 (-3 ticks), as the curve

underwent some bear flattening, with the super-long end operating in a fairly

robust manner in front of today's 20-Year JGB supply.

- The longer end of the curve does appear somewhat rich in terms of outright

yield levels, but the tightening demand-supply picture seems to be underpinning

the super-long end.

- Swaps were tighter against JGBs across the curve.

- From a technical perspective JGB futures' 151.06 resistance confirmed its

significance with gains defining last week largely negated by the rejection

ahead of this level. The close below 150.83 to start the new week saw initial

focus return to 55 & 100-DMAs. Bears need a close below the 100-DMA (150.76) to

initially target 150.65-70 where the 200-DMA is noted. Bull need a close above

150.95 to ease bearish pressure and above 151.06 to initially target 151.15-21.