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

JGBS: JGB futures ticked lower in the morning session, closing at lows,

extending on the move that was observed during the overnight session on the back

of the BoJ's latest Rinban tweaks.

- The contract sits right on its 100-DMA (150.48), with a break opening up the

50-DMA (150.27).

- The cash curve is running steeper on the day, longer dated swaps have caught

up with JGBs after they lagged in early trade.

- Today's 10-Year JGB auction dominates the local docket, with results due just

after the lunch break. 10-Year paper looks attractive against 7-Year in ASW

terms, but looks rich vs. longer dated 20- & 30-Year, the same holds true on a

z-spread basis. Short covering demand may prove to be supportive.