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 included T-Notes ticking

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

Year buckets in yesterday's Rinban operations. This came 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.

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

remainder of the week, with Japanese CPI due Friday, with a liquidity

enhancement auction for old JGBs with 5-15.5 years until maturity is due later

today.