JGB futures trade +6 at writing. The...........>

JGBS: JGB futures trade +6 at writing. The contract tested its Friday highs

after the BoJ left the size of its 1-5 & 10-25+ Year Rinban operations

unchanged, but the move was fleeting, with the contract retracing from best

levels, and lacking any real sense of direction in the Tokyo afternoon.

- The uptick in the offer to cover ratio covering today's 10-25- (3.93x from

1.55x) & 25+-Year (4.16x from 3.11x) Rinban ops may have applied some pressure

to the long end of the curve in early afternoon trade, but the moves were very

limited, with modest twist steepening seen on the curve. Elsewhere, the offer to

cover ratios in the 1-3 & 3-5 Year buckets also edged higher, albeit at the

relative margins.

- Wage & BoP data headline the local docket tomorrow, while on the supply front,

there will be an enhanced liquidity auction for off-the-run 5-15.5 Year JGBs.