JGB futures last trade 3 ticks lower....>

JGB SUMMARY: JGB futures last trade 3 ticks lower at 150.72, with the curve (out

to 20 years) modestly steeper on the day, with super-long dated paper

experiencing thin trading conditions.

- The modest steepening occurred despite a well received liquidity enhancement

auction in the 5-15.5 Year area, with a higher cover ratio evident this time out

(3.80 vs. 3.34), although the tail was longer as the high yield snuck in to

positive territory (albeit at a meagre 0.001%).

- Swap spreads were relatively flat to slightly narrower moving further along

the curve, with the super-long end swaps widening a tad (against the

aforementioned lower liquidity seen in the JGBs). 

- Tomorrow's risk events include BoJ Rinban operations in the 1-10 Year buckets,

while BoJ board member Funo is due to speak at the same time as the results are

typically published (0110 GMT).