JGB futures ticked higher in the morning.......>

JGBS: JGB futures ticked higher in the morning session, going into the lunch

break at 150.92 (-3 ticks), with the majority of the cash curve a little softer,

and swaps ever so slightly tighter in the main.

- The Nikkei 225's rally kept a lid on JGBs, as Tsys ticked higher.

- Looking at the breakdown of the BoJ's latest round of Rinban operations, the

1-3 Year bucket saw another notable uptick in the offer to cover ratio as it

climbed above 5, while the 3-5 Year bucket's offer to cover ratio held steady.

Moving onto the 10-25 Year bucket, the offer to cover ratio moved higher, which

pushed the spread that the operations take place at into positive territory,

while the 25+ Year bucket's offer to cover ratio moderated, although the spread

moved into positive territory.

- From a technical perspective bears look for a close below the low from Apr 09

(150.85), while bulls need a close above the Mar 12 high (151.06).