JGB futures added 8 ticks in overnight.........>

JGBS: JGB futures added 8 ticks in overnight trade, sticking to a tight range.

- The curve twist steepened Monday on a Nikkei story noting that Japan is

mulling an increase of 40-Year bond issuance in FY2020 (by several hundred bn

yen). The report also noted that the government will discuss whether 5- & 10-

Year issuance needs to be reduced if 40-Year issuance is lifted. There may have

also been an element of setup for today's 40-Year supply evident. The latest

round of 1-5 & 10-25+ Year BoJ Rinban ops saw all the purchase sizes remain

unch., with the 3-5 & 10-25 Year offer to cover ratios moderating & 1-3 Year

offer to cover ratio ticking higher. The moderation in the 10-25- Year offer to

cover ratio provided some stability for the longer end. Elsewhere, Monday saw

the IMF note that "the Japanese economy continues to grow above potential.

However, moderate growth in domestic demand is being eroded by the weaker

external environment, and downside risks have increased. Moreover, macroeconomic

challenges will increase as demographic headwinds intensify. While the strategy

of Abenomics remains appropriate, reinvigorated policies are needed."

- Aforementioned 40-Year supply headlines today's docket, Services PPI also due.