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

JGBS: JGB futures have stuck to a tight range and went into the lunch break 11

ticks higher at 150.08. The cash space has operated in a mixed fashion, with no

firm direction noted, although 30-Year paper has outperformed. The JPY's early

strength has largely faded which has resulted in futures moving back from best

levels.

- The BoJ's latest round of Rinban operations left the size of the ops covering

the 5-25+ Year buckets unchanged. Looking at the breakdown of the operations the

offer to cover ratio of the 5-10 Year bucket was largely steady, while the 10-25

Year' bucket's offer to cover ratio edged lower and the 25+ Year bucket's ticked

higher. All of the operations were conducted above market prices.

- Immediate pressure has returned to the 2018 high at 151.15 and the 151.15-19

resistance region. Bulls look for a close above this level to shift focus to

tests of the 2017 highs. Daily studies approaching overbought is the key concern

for bulls. Layers of support are accumulating and adding support to the bullish

case. Bears now need a close below 151.00 to ease bullish pressure.