JGB futures last +20 ticks, with the Nikkei....>

JGBS: JGB futures last +20 ticks, with the Nikkei 225 operating in the red & the

JPY on the front foot. The BoJ cut the size of its 3-5 & 10-25+ Year JGB

purchases in its Rinban operations but lifted the size of 1-3 Year purchases.

The move will leave the total monthly purchase amount of JGBs unch. if there are

no further adjustments & highlights the BoJ's desire for a steeper curve. Offer

to cover ratios for the aforementioned Rinban operations were as follows:

- 1-3 Year 3.79x (prev. 3.93x), 3-5 Year 3.48x (prev. 5.09x), 10-25 Year 2.69x

(prev. 2.53x), 25+ Year 3.81x (prev. 4.54x).

- Curve has bull flattened on the day.

- Elsewhere we got comments from BoJ's Funo who noted that there is a chance

that the BoJ will keep rates low beyond Spring 2020 (pointing to an extension of

the Bank's current forward guidance). Funo also noted that there is no need to

implement further stimulus at present, but stressed that the Bank will act if

price momentum is lost.

- Focus tomorrow turns to 30-Year JGB supply.