JGB futures last traded 7 ticks.........>

JGB SUMMARY: JGB futures last traded 7 ticks higher at 150.79 as the curve

flattened, with demand stemming from a pullback in the Nikkei 225 & a

corresponding bid in US Treasuries.

- The BoJ conducted Rinban operations across the 1-10 Year buckets, with the 1-3

Year cover ratio a lower this time out, while the 3-5 & 5-10 Year buckets' cover

ratios ticked higher alongside a narrowing in the 5-10 Year bucket's yield

spread. These factors alongside a slightly flatter US curve probably led to the

early modest flattening that we saw in the cash space, before light buying

occurred in the 1-3 Year area of the curve in the afternoon as the 225 fell. 

- The swap curve also flattened, but was mostly a little wider against JGBs.

- This came after yesterday's news that Japan's JGB transactions totalled

Y41.4tln in Jan vs. Dec's Y41.8tln & FY17 monthly average of Y43.3tln, although

Barclays note that activity was brisk among some investors with dip buying

apparent. Foreigners logged a net sale of Y759bln, their largest sell size since

November 2013, with BoJ normalisation chatter and higher global yields the most

likely catalysts for the sales.