JGB futures have softened in afternoon.........>

JGBS: JGB futures have softened in afternoon trade, with little in the way of a

clear catalyst apparent. The curve is still flatter on the day, but longer dated

yields are back from worst levels after the 10-Year yield hit the lowest level

since July earlier in the session, as JGB yields followed the global trend.

- As a reminder the BoJ reduced the number of Rinban operations covering the

10-25 and 25+ Year JGBs in December to 4 apiece, from 5 previously. Today's

Rinban operations are the first to cover the aforementioned buckets in December.

The BoJ upped the size of its 10-25 Year purchases by Y20bn to Y200bn, while it

left the size of its 25+ Year operations steady at Y50bn. If those purchase

rates hold through the month, the BoJ will buy Y100bn less of 10-25 Year JGBs

vs. the previous rate & Y50bn less of 25+Year JGBs vs. the previous rate.

- Offer to cover ratios for the Rinban ops were as follows. 5-10 Year 1.89

(prev. 1.78) 10-25 Year 2.58 (prev. 2.85) 25+ Year 3.32 (prev. 3.63)

- The usual guarded/dovish rhetoric from BoJ's Wakatabe did little to stir

trading activity. Focus now moves to tomorrow's liquidity enhancement auction

for off the run 15.5-39 Year JGBs.