Futures were happy to hug a tight range in.....>

JGBS: Futures were happy to hug a tight range in overnight trade, with little to

really report for the space.

- Auction/BoJ Rinban dynamics have dominated JGB trade so far this week.

- 3-5 & 10-25 Year Rinban ops headline the local docket today, with the 3-5 Year

Rinban ops being the first round covering that bucket since the BoJ upped the

number of monthly purchases to 6 and lowered the cap for the purchase size by

Y50bn (note the Y450bn cap is still above the prev. purchase amount covering the

bucket, which stood at Y350bn). There are some suggestions that we could see the

3-5 Year purchase amount lowered at today's Rinban, although the monthly

purchase size for that bucket should still grow, given the increase in the

frequency of ops.