JGB futures moved lower in afternoon...........>

JGBS: JGB futures moved lower in afternoon dealing, with the long end of the

cash curve underperforming. Contributory factors likely include T-Notes ticking

back from highs and an uptick in the offer to cover ratios in the 5-10 & 10-25

Year buckets in today's Rinban operations. This comes after JGB futures moved

higher in the morning session as longer dated swap rates continued to ease,

playing catch up with the bid observed in Tsys during the latter part of the NY

session.

- The BOJ left the size of its Rinban operations covering 5-25+ Year paper &

JGBis unchanged at today's operations.

- Looking at the breakdown of the operations, the offer to cover ratios read:

- 5-10 Year 3.35 (prev 2.78)

- 10-25 Year 3.72 (prev 3.34)

- 25+ Year 2.60 (prev 3.80)

- JGBis 5.15 (prev 5.41)

- Focus is set to fall on broader risk sentiment & Rinban operations through the

remainder of the week, with Japanese CPI due Friday.