JGB futures stuck to a tight range.............>

JGBS: JGB futures stuck to a tight range overnight. This came after the contract

moved away from session highs ahead of yesterday's Tokyo close, with the long

end unwinding a chunk of its outperformance. Broader geopolitical worry & the

underperformance of Chinese equities had leant support earlier in the session,

and initially detracted from a relatively soft 20-Year JGB auction, which came

on the back of last month's stellar offering, with 20-Year yields some 15 bp or

so lower than they were at the time of May's auction ahead of yesterday's

supply. It would seem that they soft round of supply exerted some pressure on

the long end/broader JGB curve ahead of the close.

- Worth highlighting our latest BoJ insight piece which noted MNI understands

that "a slowing domestic economy and a stronger yen will push the Bank of Japan

into considering further easing, with an extension of the forward guidance

duration a favoured way to initially address declining demand at home."

- 1-5 Year Rinban operations from the BoJ provide the highlight of today's

docket.