JGB futures have operated in a tight range.....>

JGBS: JGB futures have operated in a tight range in early trade, last dealing

unchanged vs. settlement. Yields out to 10-Years are trading modestly softer.

- Comments from BoJ's Amamiya revealed little new, with a focus on demographic

drivers within the economy.

- Focus on the upcoming 5-10 Year Rinban ops. MNI understands that the Bank of

Japan will likely consider reducing the frequency of its purchases of Japanese

government bonds with a remaining life of 5 to 10 years to four times monthly

from the current five as early as from next month. However, the BOJ will

exercise caution when considering the timing of reducing the frequency of its

purchases of those JGBs, as they have set the 10-year yield as a policy target

and because the risk of global financial market volatility persists. If the BOJ

reduced the frequency of JGB bond buying with a remaining life of 5 to 10 years

to four times monthly, the scale of its purchase per operation is expected to be

increased to around Y500 billion from the recent Y430 billion.