Higher in early trade; BoJ will conduct........>

JGBS: Higher in early trade; BoJ will conduct Rinban ops in 1-3 & 3-5 Year

zones. Small chance of purchase reduction, but reaction would again be limited. 

- JGB Opening Call Barclays: "Today could see the market remain firm around the

futures sector after USTs were purchased at the end of last week, but may meet

upside resistance overall given concerns about elevated price levels and

Tuesday's liquidity enhancement auction. The BoJ is scheduled to hold a buying

operation for 1-5y issues today and we expect one for JGBi as well. This week

also brings a liquidity enhancement auction for 15.5-39y issues (Tuesday), a 2y

auction (Thursday) and the BoJ buying operation plans for September (Thursday).

We forecast that the BoJ will keep the range of its JGB purchases unchanged

across all sectors. Although we see the risk of a further reduction over the

short term based on current yield levels, there is ample room to reduce even

within the range set for August, suggesting there may not be much need to change

the range itself in September. That said, there may be a risk of a downward

revision to the range of purchases for -10y issues depending on the outcome of

any reductions to operations this week."