JGB futures had edged higher during the........>

JGBS: JGB futures had edged higher during the early part of the Asia-Pacific

session, supported by broader risk off flows, as the Nikkei shed over 1.0%.

- Some pointed to the breakdown of the latest Nikkei manufacturing PMI out of

Japan, which noted that the "survey does bring some cautious undertones to the

fore, however. Export orders declined at the fastest pace in >2 years, while

total demand picked up only modestly. Confidence also continued to fall, a 7th

straight month in which this has now occurred. The prospects heading into 2019

ahead of the sales tax hike still appear skewed to the downside."

- Futures have moved back from session highs after the BoJ cut the size of its

5-10 Year Rinban operations to Y430bn (prev. Y450bn), although the pullback has

moderated somewhat. Futures last 13 ticks higher at 151.90.

- Cash trade sees the 5-10 Year sector outperform, despite the latest Rinban

tweak from the BoJ. 10-Year yields last 0.044%.