JGB futures finally caught onto the coat.......>

JGBS: JGB futures finally caught onto the coat tails of the rally in the

super-long end of the cash space during Friday's afternoon session, aided by the

Nikkei closing around unchanged levels after starting higher. The bid in futures

faded in the overnight session, aided by strong U.S. data.

- 10-Year JGB yields closed at -0.012%, with 20-40 year yields plumbing

multi-year lows, and the 5s30s curve running at the flattest level seen since

mid-July during Friday's session. 

- Friday saw little in the way of news flow noted, with a continued focus on

life insurer demand ahead of the end of the FY as many believe they remain

underweight in the space. Morgan Stanley suggested that lifers will need to

reduce their duration mismatch, which they believe will continue to support

longer dated paper.

- Focus this week moves to BoP data, Rinban operations, as well as 10- & 30-Year

supply.