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 initially. The Nikkei 225

has moved back from worst levels, prompting JGB futures to move back from highs.

- 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).

- The uptick in the offer to cover ratios meant that long-end yields unwound

their performance in the afternoon session.

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

in line with exp.

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

showing briefly above the 50-DMA (150.25), although failure to close above will

disappoint bulls.

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