JGB futures are -13 ticks worse off on the.....>

JGBS: JGB futures are -13 ticks worse off on the day, back from lows, after

bulls threatened, but ultimately failed, to force a clean break below the

overnight session low as the curve bear steepened. Steepening was already in

play during the Tokyo morning as Tokyo caught up with the overnight

developments, but the move deepened on the back of a Nikkei interview with BoJ

Gov. Kuroda, who noted that 20- & 30-Year yields have fallen "a bit too far," in

what was the Bank's latest effort to steepen the curve. The focus on longer

dated paper & failure to comment on the 10-Year yield being below -0.2% likely

aided the leg higher in futures during late Tokyo trade. Elsewhere, Kuroda noted

that cutting interest rates "further into the -ve zone is always an option," as

he re-hashed the 4 potential easing methods that he has outlined previously.

Elsewhere, Kuroda that "circumstances have not worsened enough to merit such

steps at this point." But he stressed that "caution is needed" in light of

unpredictable conditions overseas, particularly with regard to the trade war."

- The BoJ left the size of its 1-10 Year Rinban operations unchanged. The offer

to cover ratios were steady to lower, while yield spreads were higher.