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

JGBS: JGB futures stuck to a tight range in the morning session, and went into

the lunch break 7 ticks higher at 150.77, shrugging off the stronger

equity/softer JPY backdrop.

- The cash curve is a little flatter on the day, while swaps have edged wider in

the main.

- The latest JSDA data revealed that Japan's large banks sold a record amount of

super-long JGBs in April of this year.

- Participants await Tuesday's 20-Year JGB auction & Thursday's liquidity

enhancement auction.

- Bears have so far failed to gain traction below the 200-DMA (150.71) with

downside follow through lacking. Bulls continue to look for a close above the

55-DMA (150.84) to shift focus to layers of resistance between 150.95 & 151.06.

While the 55-DMA caps bears focus on 150.36-39 but now need a close below the

May 16 low (150.62) to add weight to their case. Daily studies are well placed

for a fresh leg lower.