JGB futures erased their early afternoon.......>

JGBS: JGB futures erased their early afternoon gains to last trade at at 150.91

(-4 ticks), with the cash curve flattening during afternoon dealing on the back

of the supply-demand picture apparent in the breakdown of the BoJ's latest

Rinban operations.

- Looking at the breakdown of the BoJ's latest round of Rinban operations, the

1-3 Year bucket saw another notable uptick in the offer to cover ratio as it

climbed above 5, while the 3-5 Year bucket's offer to cover ratio held steady.

Moving onto the 10-25 Year bucket, the offer to cover ratio moved higher, which

pushed the spread that the operations take place at into positive territory,

while the 25+ Year bucket's offer to cover ratio moderated, although the spread

moved into positive territory. The operations led to the super-long end

outperforming during the afternoon.

- Swaps were tighter against JGBs from 3-Years out.