JGB futs logged all-time highs even as the.....>

JGBS: JGB futs logged all-time highs even as the BoJ cut the size of 3-5 & 10-25

Yr JGB buying by Y20bn apiece, which was partially countered by a Y20bn lift the

size of 1-3 Yr purchases. Offer to cover ratios were broadly softer vs. prior

Rinban offerings, barring the 3-5 Year bucket.

- Contract last +22, just off best levels, curve a touch flatter as broader

risk-off matters outweighed domestic issues, including Japan's better than exp.

Q2, P GDP print (which was accompanied by +ve revisions to Q1). On the back of

the release Japanese Econ Min Motegi said that the gov't would not hesitate to

take additional action to support the economy if risks to growth materialised.

But he said the April-June gross domestic product (GDP) data showed the economy

continued to recover moderately on robust private consumption & capital

expenditure.

- Also worth reiterating that it is our understanding that although Japan's

growth slowed in Q2 vs. the previous quarter, the data supported the Bank of

Japan view that domestic demand has boosted the economy as exports slow.