JGB futures moved higher as risk assets took...>

JGBS: JGB futures moved higher as risk assets took a hit & the JPY appreciated

but finished the morning off of best levels as equities moved away from session

lows, before running higher again in afternoon dealing following a solid 20-Year

auction. JGB futures finished 8 ticks higher at 150.75.

- The shorter end of the JGB curve continued to underperform following the

uptick in the offer to cover ratio in yesterday's 1-3 Year Rinban operations.

While the belly of the curve & 20 Year paper outperformed.

- The latest international security flows data showed a deviation from

repatriation based flow, which may have come as a result of the USDJPY cross

finding a short term bottom just above 105.00.

- In futures the 150.55 support remains key with bears needing a close below to

shift initial focus to 150.36 and overall focus back to 150.08-09 where 2018 and

Oct lows are noted. The Bollinger base (150.61) is the key concern for bears

with potential to limit follow through. Bulls now need a close above 150.78 to

shift focus back to 150.87-90. Overall above 151.19 is needed to target 151.51

2017 highs.