JGB futures ticked back from best levels in....>

JGBS: JGB futures ticked back from best levels in early afternoon trade on the

back of the latest round of trade war reports, although the move was minimal,

with the contract sitting a handful of pips shy of its intraday high at present.

- As a reminder, futures were bid from the off, with little in the way of

headline flow apparent, some are pointing to trend following accounts as the

driver. 10-Year JGB yields remain in negative territory. Super-long paper has

underperformed in the wake of yesterday's 5 Year auction & the BoJ leaving the

size its 5-10 Year Rinban operations unchanged today, as some look for the Bank

to trim the size of its 25+ Year Rinban ops after the recent trimming of 10-25

Year purchases. Today's operations saw the offer to cover ratio tick up to 3.10x

vs. a prior 2.49x. Japanese Q/Q GDP provided a marginal miss vs. broader exp.

(although it was in line with the MNI consensus). Looking at the breakdown, the

BoJ will be encouraged by stronger than expected business spending data,

although net exports provided a drag on GDP, as worries around the global trade

backdrop/economic environment intensify.

- Focus tomorrow moves to 10-Year JGBi supply.