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

JGBS: JGB futures moved higher in early dealing Friday, 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 then 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 outperformance in the afternoon session.

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

in line with exp.

- BOJ Governor Kuroda offered little new in a speech made late Friday.

- Focus this week turns to Rinban operations (Wednesday & Friday), a liquidity

enhancement auction for 5-15.5 Year paper (Tuesday) & 2-Year supply (Thursday).