JGB futures eased overnight, losing 19 ticks...>

JGBS: JGB futures eased overnight, losing 19 ticks vs. Tokyo settlement, as the

BoJ trimmed the lower and upper limits of its purchase bands for 3-25+ Year

Rinban operations in its October Rinban outline, while it lifted the lower and

upper purchase limits of its 1-3 Year operations. As a reminder, this came after

the BoJ lifted the size of its 1-3 Year Rinban purchases & cut the size of its

3-5 Year Rinban purchases on Monday.

- This reaffirms the Bank's desire to steepen the yield curve, and was reflected

in market pricing on Monday.

- The BoJ's Tankan survey will be scrutinised today, with a particular focus on

matters surrounding CapEx plans. Elsewhere, the latest labour market survey

revealed a downtick in the unemployment rate.

- Also worth remembering that Japan's heavily documented sales tax hike goes

into effect today.