JGB futures once again operated in an..........>

JGBS: JGB futures once again operated in an extremely narrow window on

Wednesday, with little in the way of catalysts provided. The cash space traded

in a confined range, with the belly experiencing some modest outperformance

after the BoJ left the size of its Rinban operations covering the 5-10 Year

bucket unchanged. The offer to cover ratio in the 5-10 Year bucket moderated to

3.17 from 4.24.

- BoJ Rinban operations covering the 1-5 & 10-25+ Year buckets dominate today.

- Some, including Nomura, are focused on today's Rinban operations, suggesting

that the BoJ may alter the size of its purchases in some of these tenors. As a

reminder, the most recent alteration came nearly 2 weeks ago, when the BoJ

trimmed the size of its purchases in the 5-10 Year bucket.

- The BoJ's MonPol meeting concludes on Friday, no change is expected, with

focus set to fall on BoJ Gov. Kuroda's post-meeting press conference.