JGB futures have drawn some light support......>

JGBS: JGB futures have drawn some light support from the very solid 20-Year

auction out of Japan, which came to fruition even with a lack of concession

heading in (may have been helped by the uptick in super long yields on Friday &

Monday which came on the back of an uptick in the offer to cover ratio in the

BoJ's latest 25+ Year Rinban operations), with the highest cover ratio on record

for that particular tenor noted. The low-price topped exp. (based on the BBG

dealer poll) with the % allotted at the high yield moderating. The price tail

was marginally wider, but you would probably expect that given the fact that

both the average and low prices were above the previous auction's average price.

Futures last trade 2 ticks better off on the day.

- The curve flattened on the back of the auction.

- BoJ dissenter Harada sounded his usual guarded self, stressing that the BoJ

will not hesitate to act re: further easing if required, while he also sounded

quite worried re: the impending sales tax hike.

- Focus tomorrow moves to manufacturing PMI data.