JGB futures have pared their overnight.........>

JGBS: JGB futures have pared their overnight losses, and last trade 1 tick lower

ahead of the close.

- The risk-on theme capped the contract in early Tokyo trade.

- The latest round of BoJ Rinban operations saw the Bank leave the size of its

5-25+ Year JGB purchases unchanged. Offer to cover ratios were as follows:

- 5-10 Year 1.74x (prev. 3.21x), 10-25 Year 2.73x (prev. 3.52x), 25+ Year 3.93x

(prev. 4.45x).

- The lower offer to cover ratios, coupled with month- & FY-end flows likely

leant support in the afternoon session, allowing futures to pare their losses.

Modest twist steepening is evident in the cash space.

- There has been some speculation re: the possibility of the BoJ adjusting its

Rinban purchases when it releases its April buying plan after hours today, after

Thursday saw 10-Year JGB yields testing the old lower limit of the BoJ's

permitted trading band, at -0.1%. 10-Year yields last -0.094%