Japanese bond and stock flow figures out.......>

JGBS: Japanese bond and stock flow figures out today showed Japanese investors

are selling foreign debt hard (-Y729.7bln, last figures -Y1084.2) The JGB

10-Year dipped following the release of the flow data, the announcement of

weaker core machine orders and opinions from the BOJ who said it will take time

to reach the 2% target for inflation they are so set on. The 10-Year picked up

after the excitement from all of the above as the market awaits the hotly

anticipated 30-Year auction and despite the strength of Japanese stocks. The

10-Year JGB was last at 151.01.

- Investors look to the 30-Year bond auction, set to bring in strong demand and

results in around 45 minutes... The abovementioned hard selling of foreign debt

may mean more demand in the auction, today's flow figures showed foreign

investors bought net Y90.4bln in Japanese bonds up from Y81.7bln previous.

- 2-Year JGB's are cheaper after Wednesday's BOJ buying operations saw an

average spread of -0.012 on the short end.

- The 10-Year yield was last at 0.025% and the 30-Year was last down 0.013% at

0.793%.