JGB futures ripped higher as they played.......>

JGBS: JGB futures ripped higher as they played catch up after a long Tokyo

weekend, gaining fresh upside impetus in the second half of the session. The

contract finished +58 ticks on the day at 153.48, with the afternoon move likely

aided by the moderation in offer to cover ratios in today's 10-25+ Year Rinban,

outlined earlier. Bulls now look to 153.55, the Nov 28 high and key resistance.

- The belly was the outperformer in the cash space on the day, while swap spread

tightening was highlighted again in the super-long end, even as super-long paper

lagged the belly (morning underperformance may have been linked to some

pre-Rinban nerves).

- Also worth flagging the most recent comments from Japanese PM Abe, who noted

that the government is putting together a policy re: coronavirus measures, and

noted that the country will take stronger steps to fight the virus in regions

that have witnessed cluster infections.

- Coronavirus developments continue to snatch attention, with a 15.5-39 Year JGB

liquidity enhancement auction scheduled for tomorrow.