JGB futures pare their overnight losses in.....>

JGBS: JGB futures pare their overnight losses in the first hour or so of Tokyo

trade, with the contract last sitting one tick lower than settlement.

- Yields slightly higher across the curve on the day owing to the overnight

gyrations.

- July's Tokyo CPI readings were ignored, with the 3 major measures providing

little deviation vs. the June readings on net.

- Focus now moves to the BoJ Rinban operations covering 10-25+ Year paper. As a

reminder, this week's 40-Year auction was weak, but the move higher in yields on

the back of the auction has been reversed, and more, with participants seemingly

using the move to enter longer dated flatteners, a preferred position of several

well followed strategists at present.