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

JGBS: JGB futures finished the morning session at best levels, fully recovering

the early retracement from the overnight session closing levels, going into the

lunch break 4 ticks above settlement as the Nikkei 225's early uptick faded.

- The belly of the cash curve outperformed in the morning session, with 7-Year

yields leading the way lower after yesterday's late twist steepening, before the

cash space was subjected to selling pressure which resulted in steepening

through the afternoon as the Nikkei 225 finished near highs & pushed futures a

handful of ticks back from lunch time levels.

- BoJ Governor Kuroda pointed to the continued need for current levels of

monetary easing for a second day, using familiar language in the process. He has

also stressed that the BoJ's adjustments to YCC in July did not represent

stealth tapering.

- Focus next week turns to the latest BoJ Tankan survey and final GDP data out

of Japan. 30-Year supply will also draw attention next week, as well as the

BoJ's usual Rinban operations.