JGB futures trade 10 ticks lower on the day....>

JGBS: JGB futures trade 10 ticks lower on the day and have unwound the uptick

that came alongside the curve twist flattening in the wake of a solid 30-Year

JGB auction in the early part of the Tokyo afternoon. The auction built on the

decent enough showing at last week's tap of longer dated off-the-run JGBs. The

low price was above dealer exp. (100.25 per the BBG poll), with the tail

narrowing and cover ratio edging higher.

- Futures had been reluctant to reverse their overnight downtick earlier in the

day, and that has perhaps played into the pullback from best levels after the

initial bounce post-auction (which also came as the Nikkei 225 & USD/JPY ticked

back from best levels).

- Elsewhere, Japanese Economy Minister Nishimura noted that the gov't & BoJ

"will take all necessary steps to ensure a sustained economic recovery as the

country has not completely emerged from deflation yet." Meanwhile, BoJ Deputy

Nishimura focused on the need for the Asia-Pac region to move away from LIBOR

benchmarks.