JGB futures operated in a narrow range, much...>

JGBS: JGB futures operated in a narrow range, much the same as their global

counterparts, with futures going in to the lunch break 4 ticks lower at 150.95.

- Cash JGBs were generally offered with the 10-Year tenor underperforming.

- Trading conditions were generally quiet, ahead of a holiday shortened week for

the western world. The Nikkei 225 was lower, with USDJPY ticking higher, as

AUDJPY pushed JPY crosses upwards.

- Barclays note that "this week brings a 40-year JGB auction on Tuesday, a

2-year auction on Thursday and the BoJ's JGB buying operation plans for April on

Friday, but we expect thin trade with limited price action into the fiscal

year-end. In its JGB buying operations for April, we believe the BoJ is likely

to leave its purchasing ranges unchanged from March across all sectors. Although

the BoJ's next action may be to decrease rather than to increase given that

yields are near the lower bound of their range, we do not see a strong need for

it to revise its purchasing ranges this time around given that concerns about

JPY appreciation persist and that there is still plenty of room to reduce within

the existing ranges."