JGB futures stuck to a tight 5-tick range in...>

JGBS: JGB futures stuck to a tight 5-tick range in the morning session, with the

super-long end experiencing some modest underperformance with risk on flows

apparent, while the belly showed no sign of concession ahead of today's 5-Year

JGB supply. The auction didn't fair as well as some had hoped, with the cover

ratio moderating and the low price failing to meet exp., it is worth noting that

the average price was in-line with the expectations for the low price. This saw

a modest downtick in JGB futures, with the belly of the cash curve softening a

touch, however, futures have ticked higher in recent trade.

- BoJ's Funo offered little new, stressing that the current inflation weakness

is temporary, although he did highlight the downside risks to his view.

- Bears have so far failed to capitalise on last Wednesday's sell-off in futures

with the recovery resulting in pops above 100 & 200-DMAs. The 150.88-94

resistance region remains key today and has held firm thus far. Bulls need a

close above this region to return focus to the 151.02-19 resistance region.

Daily studies remain well placed for gains. Bears now need a close below 150.71

to gain breathing room and reconfirm initial focus on 150.53-60.