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JGBS: JGB futures once again edged away from support around 150.00, with
participants focused on today's 10-Year JGB auction. Early dealing saw little in
the way of concession being built into the space, with yields edging lower and
some modest curve flattening apparent. That was before 10-Year paper softened
into the lunch break, as futures moved back from session highs. 
- There was little immediate reaction to the latest 10-Year JGB auction. The low
price of the auction came in slightly higher than the BBG poll (99.56), with the
length of the tail holding steady vs. the most recent auction. The cover ratio
eased a tad, but all in all it was a solid enough auction. The fact that the
auction represented the opening of a new line and the lack of conviction in
establishing fresh shorts in the sector seemingly outweighed any worry
surrounding the BOJ adjusting the size of its Rinban operations covering the
sector following last week's adjustment to the upper and lower bounds of the
BOJ's 25+ Year operations. Futures moved higher into the close, dragged by Tsys.
- There was also some focus on Samurai issuance with SocGen set to price 5- &
10-Year paper & BFCM set to price and 5-, 7- & 10-Year paper.
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