JGB futures had a look below Tuesday's low.....>

JGBS: JGB futures had a look below Tuesday's low in early trade Wednesday, but a

negative start for the Nikkei 225 (-0.7% at the break) lent support.

- Little reaction in the space to a strong 5-Year JGB auction, that had no tail,

and exhibited a much firmer cover ratio than the previous auction. Demand was

likely driven by attractive relative value proposition vs. 7-Year paper.

- Space then drew support from 3-Month Euro-Yen TIBOR fixing 4.4bp lower at a

new record low of 0.0300%, with yields out to 7-Years dragged lower and futures

moving to intraday highs before the move was unwound overnight.

- BBG & RTRS source reports suggested that the BoJ will cut its inflation

outlook at next week's MonPol decision, in line with broader expectations and

various other source reports in recent times.

- Focus today turns to an address from BoJ's Kuroda & Amamiya, as well as 5-10

Year Rinban ops.