JGB futures continue to operate in a tight.....>

JGBS: JGB futures continue to operate in a tight range, and trade 10 ticks lower

as we head towards the Tokyo close. The contract had a brief look below the

overnight session lows in the early part of the Tokyo afternoon after the offer

to cover ratios ticked up in the latest round of longer dated BoJ Rinban

operations. As a reminder the BoJ left the sizes of its 1-5 & 10-25+ Year Rinban

operations unchanged. Offer to cover ratios as follows:

- 1-3 Year 3.20x (prev. 3.88x), 3-5 Year 3.31x (prev. 4.19x), 10-25 Year 3.30x

(prev. 2.31x), 25+ Year 3.97x (prev. 3.26x).

- A positive session for risk appetite limited the early bounce in the contract.

- The JGB curve has bear steepened today.

- BoJ Governor Kuroda offered little new in his latest address in the Diet,

while Japanese PM Abe reiterated his trust in the BoJ Governor.

- 10-Year JGB supply headlines the local docket on Tuesday.