JGB futures have operated in familiar..........>

JGBS: JGB futures have operated in familiar territory, sticking to a tight

range, finishing the morning session 5 ticks higher at 150.89.

- Cash trade has been fairly limited with the shorter end of the curve

experiencing some modest outperformance.

- The BoJ left the size of its Rinban operations covering the 1-10 Year area of

the curve unchanged at today's operations. Looking at the breakdown of the

Rinban ops, the offer to cover ratio of the 5-10 Year bucket continued to move

higher after the BoJ trimmed the size of its operations covering the bucket last

Friday, while the 3-5 Year bucket's offer to cover ratio eased a tad and the 1-3

Year bucket's offer to cover ratio fell from above 5.0 to ~3.6.

- Bulls will take comfort in futures' recovery from tests of the 200-DMA

(150.75) with the 150.94-151.02 resistance region key today. Daily studies have

corrected back to more neutral levels.