JGB futures operated in a tight range on.......>

JGBS: JGB futures operated in a tight range on Monday, holding lower after

Friday's sell off. The contract had a brief look below the overnight session

lows in the early part of the Tokyo afternoon after the offer to cover ratios

ticked up in the latest round of longer dated BoJ Rinban operations. As a

reminder the BoJ left the sizes of its 1-5 & 10-25+ Year Rinban operations

unchanged. Offer to cover ratios as follows:

- 1-3 Year 3.20x (prev. 3.88x), 3-5 Year 3.31x (prev. 4.19x), 10-25 Year 3.30x

(prev. 2.31x), 25+ Year 3.97x (prev. 3.26x).

- A positive session for risk appetite limited the early bounce in the contract,

although the contract edged higher overnight as risk took a hit.

- The JGB curve bear steepened on Monday.

- BoJ Governor Kuroda offered little new in his latest address in the Diet,

while Japanese PM Abe reiterated his trust in the BoJ Governor.

- 10-Year JGB supply headlines the local docket today.