JGB futures head into the close lower, JBZ7....>

JGBS: JGB futures head into the close lower, JBZ7 down 11 ticks at 150.83. The

Tokyo session has been fairly quiet for JGB's, with around 6 ticks of losses

sustained. Sellers initally took hold amid risk on sentiment with Asia stocks

opening in the green, selling was particularly evident in the long end ahead of

the 20-Year auction.

- The auction was taken down smoothly, covered 4.152x  compared to 4.507x last

time out - this was still the 3rd highest of 20-Year auctions over the past

year. The low price was higher than forecast. Still the decent auction did not

spark any significant buying in the afternoon, futures hitting session lows of

150.79 before bouncing slightly into the close.

- JGB's also saw limited reaction to the story that North Korea threatened to

sink Japan with nukes. The Nikkei came off in the afternoon as the yen

strengthened and this helped JGB's stem their losses in the afternoon session.

- Market is heading in to the close with yields higher, moves mixed; the 30-Year

sector has seen some selling after the auction with sources noting a move into

the 20-Year bucket post auction. 10-Year yield last up 0.6bp at 0.030%.