JGB futures have backed off from best levels...>

JGBS: JGB futures have backed off from best levels during Wednesday's afternoon

session, after a run higher in late morning trade, which spilled over into the

early part of the afternoon session after the lead contract breached Tuesday's

session high. The contract ran out of steam ahead of resistance noted at the

July 23 high of 150.98.

- The cash curve witnessed some modest flattening.

- The Nikkei 225 traded either side of unchanged throughout the day, generally

outperforming the other regional benchmark equity metrics.

- The space looked through the latest Japanese GDP release.

- It is worth noting that there is some Y2.6tn worth of redemptions from old

2-Year paper due today, with a 5-Year JGB auction also scheduled.