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

JGBS: JGB futures stuck to a tight 5-tick range in Thursday's 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 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 ticked higher into the close, finishing within the range

observed during the morning session.

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

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

- The BOJ will conduct Rinban operations in the 1-10 Year buckets today.