JGB futures tracking sideways in Tokyo.........>

JGBS: JGB futures tracking sideways in Tokyo trade, last down 4 ticks at 150.90

after dropping alongside US tsys and EGB's in the overnight session. Futures

have been rangebound today in the morning session between 150.84L/150.92H.

- Yields are higher across the curve, the 20-Year sector seeing some pre-auction

concession. The yield in the sector last up 1bp at 0.557%. 

- There are heavy JGB redemptions this month with Y2.499tln of 2-Year due

tomorrow, while September 20 sees a total of Y16.6tln mature, of which Y915.6bln

are 20-Year bonds.

- JGB's outperform ASW in the long end with the 20-Year richening 0.2bp to

L-6.1bp. 10-Year swap spreads have narrowed some 0.9bp with decent receiving

interest noted at 0.23%.

- The JGB VIX has come off its recent highs after roll related volaility, but

remains at 1.90 - elevated by historical standards.