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

JGBS: JGB futures stuck to a tight range on Wednesday, with traders having

little to go off.

- Cash bonds also struggled for direction, hovering around unchanged levels in

the morning session, before yields edged modestly higher in the afternoon.

- The enhanced liquidity auction for JGBs with 5-15.5 Years until maturity was

well received, as the bid to cover ratio moved higher.

- Focus today turns to BOJ Rinban operations covering the 5-25+ Year sectors.

- Bulls have so far failed to take out the 151.02 resistance in futures, which

is needed to add support to the case for a test of the 151.13-19 resistance

region. Daily studies correcting from modestly overbought levels weighed in past

weeks. Bears now need a close below the 55-DMA (150.85) to gain breathing room

and below 150.80 to shift initial focus to 150.71-74 where the 200-DMA is

situated.