JGB futures fell yesterday for the first day...>

JGBS: JGB futures fell yesterday for the first day in 6. The futures area sold

off from the open before bouncing in the afternoon session and dipping again

into the close. The BoJ purchase operations were decent yesterday. The curve saw

bear twist steepening initially before the long end flattened slightly into the

close.

- JGB Opening Call Barclays: "Today could see the area around futures remain

weak given the continuing decline in bond futures overnight and the pending

announcement of the BoJ's September bond-buying plans, but the superlong sector

could remain firm due to the big extension into the month-end. We expect the 2y

auction (JN380) to produce decent results even at yields near current levels

given the favourable supply and demand. We look for the BoJ to leave its ranges

unchanged across all sectors when it announces its bondbuying plans for

September. Although a downward revision to the 5-10y sector cannot be ruled out,

there is still room for the BoJ to reduce even within the range for August,

suggesting it does not have an urgent need to change the range itself this time

around."