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

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

break at session lows, extending on the move that was observed during the

overnight session on the back of the BoJ's latest Rinban tweaks.

- Futures then caught a bid on the back of the solid 10-Year auction results,

registering a fresh session high as a result, after the contract had tested

support at the 100-DMA earlier. 10-Year cash JGBs are outperforming on the curve

on the back of the auction, with yields in the zone now lower on the day. Yields

across the curve sit a little higher on the session, but are well of of their

session highs.

- As mentioned ahead of the auction, the zone looked particularly attractive

against 7-Year JGBs in ASW and Z-spread terms, with short covering demand likely

adding additional support. The line continues to look rich vs. the longer dated

20- & 30-Year lines.

- The space also drew support from a heavy session for the Nikkei 225, which

registered fresh session lows in the afternoon.

- Focus tomorrow turns to BoJ Rinban operations covering 1-10 Year JGBs.