JGB futures sit off their Rinban tweak.........>

JGBS: JGB futures sit off their Rinban tweak inspired lows, last unchanged on

the day, with the super-long end underperforming in the cash space. The slight

reduction in longer dated offer to cover ratios, coupled with the MoF buying

back Y20bn worth of JGBs & a slight pullback in the Nikkei has likely cushioned

the earlier fall in futures, although there has been no respite for 20+Year plus

paper on the back of the Rinban tweaks. Offer to cover ratios for the Rinban

operations were as follows: 1-3 Year 3.08x (prev. 2.71x), 3-5 Year 2.49x (prev.

1.88x), 10-25 Year 2.43x (prev. 2.68x), 25+ Year 3.45x (prev. 4.32x)

- The latest BBG sources report suggested that the BoJ will likely trim its GDP

exp. next week, the sources were less clear if the Bank would lower its CPI exp.

- Elsewhere, Japan's Finance minister Aso said that further discussions on FX

matters will occur between himself, and his U.S. counterpart Mnuchin. Aso also

noted that he doesn't expect the ongoing trade talks with the U.S. to effect BoJ

MonPol. On domestic matters, Aso noted that there is no change in the

government's stance to implement the sales tax hike as planned, despite some

questions from within the ruling LDP party becoming apparent on Thursday.