JGB futures have unwound the weakness they.....>

JGBS: JGB futures have unwound the weakness they were subjected to in early

dealing, as risk on flows reversed, leaving the Nikkei 225 up a marginal 0.2%,

with a heavy start for Chinese shares the likely catalyst for the reversal.

- Yields trade unchanged to 0.4bp lower last.

- A RTRS sources piece has suggested that "the Bank of Japan is considering

tweaking its bond buying operations to allow the government debt market to

better reflect fundamentals, people familiar with the matter said, following

years of heavy central bank buying in the sector." The piece went on to note

that "several ideas are under consideration, such as reducing the frequency of

the BOJ's bond purchases or making slight changes to the timing of its

government debt purchases to encourage more trading activity between financial

institutions." The piece also stressed the BoJ isn't rushing to make the

aforementioned alterations.

- Wednesday's BoJ MonPol decision provides the key point of interest this week.

The issuance/BoJ Rinban schedule is light. 10-Year paper will be auctioned on

Thursday, with the BoJ set to buy 1-5 & 10-25+ Year JGBs tomorrow.