JGB futures last trade +29 ticks, ~15 ticks....>

JGBS: JGB futures last trade +29 ticks, ~15 ticks off highs. The belly of the

JGB curve outperformed again, with a soft 40-Year auction (multi-year lows for

the cover ratio and a high yield 2.0bp > dealer exp. proxied by the BBG poll)

providing some weight to super-long paper, facilitating some twist steepening of

the curve. As a reminder of the broader recent themes, curve steepening is the

focus of the BoJ's current agenda (with Rinban tweaks and Kuroda's explicit

warning re: super-long yield levels facilitating some steepening in recent

weeks/sessions), while the prospect of further BoJ easing has supported shorter

dated paper & the belly.

- There was no surprise that BoJ board member Masai's latest address was in line

with the central view at the BoJ. Elsewhere, the minutes from the BoJ's July

MonPol decision were released & viewed as even more outdated than usual given

the evolution in the MonPol discussion since then, namely the BoJ's willingness

to reassess matters at its next MonPol decision in Oct.

- 5-10 Year BoJ Rinban purchases & an address from BoJ Governor Kuroda provide

the highlights of tomorrow's docket.