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

JGBS: JGB futures finished the morning session a little off worst levels, -9 vs.

settlement, with the BoJ delivering the expected cut to 3-5 Year JGB purchase

sizes, although the Bank is still on course to buy more of that particular

sector this month (vs. May), given the uptick in op frequencies for that area of

the curve.

- 3-5 Year ops saw an uptick in offer/cover and a widening of spreads, while the

10-25 Year ops saw a downtick in offer/cover and a slight widening of spreads

(when compared to prev. ops covering the bucket).

- The broader risk tone is driving the direction of the space thus far.

- 7s underperform in cash trade, alongside the move in futures, yields mixed

across the curve.

- The swap curve has steepened, with some widening of the 20- & 30-Year LCH/JSCC

spreads pointing to foreign paying in the longer end.