JGB futures stuck to a tight range, and went...>

JGBS: JGB futures stuck to a tight range, and went in to the lunch break 8 ticks

higher at 150.93. Paper from the belly out outperformed shorter dated

counterparts, with shorter dated swaps tightening, while they mainly widened

from the belly to further out.

- Looking at the latest round of BoJ Rinban Ops, the offer to cover ratio in the

10-25 Year bucket ticked ever so slightly higher, although the spreads within

the bucket remained in negative territory. The 25+ Year bucket saw a moderation

in the offer to cover ratio, which allowed the spreads on the ops to move in to

negative territory.

- The market is focused on the traditional month-end domestic data dump due on

Friday.

- Future's recovery from the 200-DMA is now in a little trouble with the failure

around 151.06 leaving it looking a little heavy. Bears need a close below 150.82

to shift focus back to layers of support 150.55-73 where 55, 100 & 200-DMAs are

located. Bulls now need a close above 151.06 to reconfirm initial focus on

151.13-19 where the Bollinger top, 2018 high and Nov monthly high are located.