JGB futures last trade back at near enough.....>

JGBS: JGB futures last trade back at near enough unchanged levels after turning

bid as the BoJ increased the size of its 10-25 Year purchases after reducing the

monthly purchase frequency to 3x from 4x in its June plan. Worth noting that

should there be no more tweaks to the sizes of purchases, the BoJ will buy Y40bn

less 10-25 Year JGBs in June than it did in May. The BoJ's activity triggered

some twist flattening in the cash space, pivoting around the 10-Year zone. The

offer to cover ratios of the aforementioned Rinban ops may offer a clue as to

why the curve twist flattened.: 5-10 Year 2.77 x (prev. 1.60x), 10-25 Year 2.29x

(prev. 2.60x), 25+ Years 3.30x (prev. 3.67x)

- The latest consumer spending and wage data had little effect on the space.

- Focus Monday turns to BoP data & final Q1 GDP. The BoJ will also conduct 1-5

Year Rinban operations.