JGB futures finished the morning session 8.....>

JGBS: JGB futures finished the morning session 8 ticks lower at 150.88, as the

belly of the curve underperformed in front of today's 40-Year JGB supply, as

super-long paper held up well despite questions hanging over today's auction.

- FY end fiscal demand seems to have waned, with some suggesting that it was

somewhat front-loaded this year.

- The broader risk on tone has pressured the JGB space, with USDJPY back above

105.60.

- From a technical perspective future's recovery from 200-DMA tests that defined

last week is now in a little trouble with the failure around 151.06 leaving it

looking a little heavy. Bears now need a close below 150.82 to shift focus back

to layers of support 150.55-73 where 55, 100 & 200-DMAs are located. Bulls now

need a close above 151.06 to reconfirm initial focus on 151.13-19 where the

Bollinger top, 2018 high and Nov monthly high are located.