JGB futures have traded in lacklustre..........>

JGBS: JGB futures have traded in lacklustre fashion, operating in an extremely

tight range and last deal 4 ticks higher at 150.83.

- Cash trade has been relatively listless, with yields operating in a contained

manner.

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

operations covering the 10-25+ Year buckets & JGBis unchanged. Looking at the

breakdown of the operations, the offer to cover ratio of the 10-25 Year ops

ticked up to 3.23 from 2.78, while the offer to cover ratio of the 25+ Year ops

moderated to 3.97 from 4.14.

- Futures hesitation ahead of the 150.95-151.06 resistance region is less than

ideal for bulls with a close above 151.06 needed to shift initial focus to

151.15-21. Bears continue to look for a close below the 100-DMA (150.73) to end

bullish hopes and shift initial focus back to 150.52.