JGB futures reclaimed 150.00 early on, with....>

JGBS: JGB futures reclaimed 150.00 early on, with yields edging lower across the

board & modest curve flattening apparent. There was no notable reaction in the

JGB space after the BOJ left the size of its longer dated Rinban operations

unchanged, the offer to cover ratios from the ops can be seen below:

- 10-25 Year 2.01 (prev. 2.67), 25+ Year 3.88 (prev. 3.41), JGBis 5.79 (prev.

5.89).

- The offer to cover ratio in the 25+ Year bucket ticked higher & comes in lieu

of a soft liquidity enhancement auction for 15.5-39 Year JGBs yesterday, which

promoted curve steepening and some trepidation ahead of today's Rinban.

- As a reminder 10-Year yields are > levels that triggered vol smoothing

operations from the BOJ in recent times, although the higher JGB yields remain

within the BOJ's acceptable range & focus remains on how - and how rapidly --

10-Year yields moves toward +0.2% or higher, MNI understands. The BOJ still

stands ready to curb higher yields through bond buying ops if the rise is deemed

too rapid (as we noted Thursday).

- The space will be closed on Monday.