JGB futures have stuck to a tight range and....>

JGBS: JGB futures have stuck to a tight range and last trade 5 ticks higher at

150.97.

- Longer-dated JGBS garnered additional support as the bid to cover on the

latest 40-Year JGB auction ticked higher (although Y100bln less was on offer),

with the high yield on the auction sitting at 0.865% against expectations for

0.880%, which was was also supportive for prices. The coupon was reduced to 0.8%

from the prior line's 0.9%. The auction result promoted further curve

flattening.

- The lingering JPY appreciation pressures and the expected month-end extension

by pension funds was expected to spur a certain level of demand at the auction.

- 10-30 Year swaps are running tighter, with the swap curve flattening on the

day.

- Further Samurai issuance has been announced which should price later this

week.