JGB futures operated in a 4 tick range, with...>

JGBS: JGB futures operated in a 4 tick range, with the super-long end continuing

to outperform in cash dealing despite the upcoming 30-Year JGB supply. Many

expect lifers to post strong demand in the upcoming auction, owing to the

political risks in Europe.

- The BOJ left the size of its Rinban operations covering the 1-10 Year buckets

unchanged at today's operation. Looking at the breakdown of the operation, the

offer to cover ratio of the 1-3 & 3-5 Year buckets edged higher, while the cover

ratio of the 5-10 Year bucket held steady.

- JGB bears need a close below 150.89 in futures to signal a false break higher

and return focus to 150.71-80.