JGB futures finished the morning session 5.....>

JGBS: JGB futures finished the morning session 5 ticks higher at 150.72

underpinned by a softer equity backdrop during the early part of Wednesday's

Asia-Pacific session. Futures stuck to a tight range ignoring January's BoJ

meeting minutes & the latest machine tool orders release.

- The cash space saw some modest flattening this morning.

- In the lunch hour we have seen that the BoJ's latest batch of Rinaban

operations delivered mixed results across the buckets. The 1-3 Year bucket saw

the offer to cover ratio tick higher, which pushed the discount to current

market prices higher, while the 5-10 Year offer to cover ratio moderated

allowing the operation to move into a slight premium against current market

prices. The operations in the 3-5 Year bucket were broadly consistent with the

results from the most recent operations.

- From a technical perspective the 150.55 support is key with bears needing a

close below to shift focus to 150.36. The Bollinger base (150.59) is the key

concern for bears. Bulls now need a close above the 100-DMA (150.70) to gain

breathing room and above 150.78 to shift focus back to 150.87-90.