JGB futures have once again operated in an.....>

JGBS: JGB futures have once again operated in an extremely narrow window, with

little in the way of catalysts provided. The cash space has operated in a

confined range, with the belly experiencing some modest outperformance after the

BoJ left the size of its Rinban operations covering the 5-10 Year bucket

unchanged today. The offer to cover ratio in the 5-10 Year bucket moderated to

3.17 from 4.24.

- Some, including Nomura, are focused on tomorrow's Rinban operations, which

will cover the 1-5 & 10-25+ Year buckets, suggesting that the BoJ may alter the

size of its purchases in some of these tenors. As a reminder, the most recent

alteration came nearly 2 weeks ago, when the BoJ trimmed the size of its

purchases in the 5-10 Year bucket.

- The BoJ's MonPol meeting concludes on Friday, no change is expected, with

focus set to fall on BoJ Gov. Kuroda's post-meeting press conference. Some have

suggested that the BoJ may downgrade its inflation forecasts to a view more

inline with private economists.