JGB futures sit 1 tick higher on the day,......>

JGBS: JGB futures sit 1 tick higher on the day, largely driven by broader risk

flows after the contract managed to print a fresh record high in the most recent

overnight session.

- The curve sits a touch flatter, albeit at the margin.

- There was little to write home about for the space. In terms of broader

matters, there was confirmation that Japan has granted the first approval of

high-tech material exports to South Korea since Tokyo imposed the

well-documented export curbs, although government officials were keen to stress

that Japan will consider expanding its strict examination of exports if improper

use of exports to South Korea is found.

- The latest 10-Year JGBi auction failed to generate headlines with the cover

ratio holding steady and breakevens little changed as a result.

- Focus tomorrow turns to the preliminary Q2 GDP print and BoJ Rinban operations

covering 1-5 & 10-25+ Year paper.