JGB futures have tried to fill the gap from....>

JGBS: JGB futures have tried to fill the gap from Friday's close, but are

struggling for any real downside impetus, last -2 as we move towards the close,

which is 8 ticks off session lows. Lows were hit in early afternoon trade after

the average spreads applied across the BoJ's 1-10 Year Rinban ops ticked higher,

even as the offer to cover ratios moderated vs. prev. ops.

- Curve has twist flattened during the afternoon session, aided by the

aforementioned Rinban ops,

- 30-Year LCH/JSCC swap spreads stabilised today, after lodging 5 days of

tightening (which as we had previously outlined, is indicative of foreign

receiver side flow).

- The most interesting matter in the summary of opinions from the BoJ's most

recent MonPol decision was that one board member emphasised that a review of the

Bank's monetary policy was becoming a necessity as muted growth and stubbornly

low inflation continue.

- 2-Year supply and an address from BoJ Deputy Gov Amamiya headline tomorrow's

local docket.