JGB futures moved higher in early dealing,.....>

JGBS: JGB futures moved higher in early dealing, in sympathy with the broader

risk appetite trends that had been observed since the onset of the NY afternoon

on Thursday, which allowed the yield curve to flatten.

- The Nikkei 225 has moved back from worst levels, which allowed JGBs to pare

some of their gains, although the curve remains flatter on the day.

- From a technical perspective JGB futures have now breached Monday's high,

showing briefly above the 50-DMA (150.25), with bulls looking for a close above

to turn attention to the 150.38 Fib level. 149.95 remains the base for JGB

futures for now.

- The space discounted the latest round of local CPI data, which was virtually

in line with exp.

- The BOJ left the size of its Rinban operations covering the 10-25+ Year

buckets unchanged, the offer to cover ratios can be found below:

- 10-25 Year 3.50 (prev. 2.70), 25+ Year 3.52 (prev. 3.16).

- Focus now turns to comments from BOJ Gov. Kuroda due later today.