JGB futures have also traded in a limited......>

JGBS: JGB futures have also traded in a limited manner on Monday, last +2 ticks,

as the super-long end of the cash curve underperforms at the margin.

- The BoJ left the size of its 1-10 Year & JGBi purchases unchanged in the

latest round of Rinban operations, offer to cover ratios as follows: 1-3 Year

3.74x (prev. 3.79x), 3-5 Year 2.98x (prev. 3.48x), 5-10 Year 2.23x (prev.

3.43x), JGBi 4.36x (prev. 5.12x).

- As you can see, the offer to cover ratios were generally lower, which likely

leant some support to the maturities that were eligible for purchase today,

while the super-long end underperformed on a lack of BoJ purchases.

- As a reminder, the weekend saw Abe's ruling coalition claim victory in the

upper house election, as expected, but the group failed to secure the two thirds

super-majority needed to alter the constitution (namely the pacifist section),

that would have appeased some of the more nationalist members of the ruling LDP

Party. PM Abe has noted that the vote showed acceptance of his plans to raise

the sales tax and to open debate on amending the charter.

- 40-Year supply provides the point of interest for traders on Tuesday.