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

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

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

Wednesday's 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, after the contract had tested support at the

100-DMA. 10-Year cash JGBs outperformed on the curve on the back of the auction.

- 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.

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