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

JGBS: JGB futures trickled lower in the morning session, with little in the way

of catalysts apparent, outside of a recovery in the Nikkei 225 from the early

lows.

- Longer dated swaps have moved lower from the off, with some suggesting this

pointed to unwinding of foreign payer positions ahead of today's 20-Year JGB

supply and month-end extensions.

- JGB futures have had a limited reaction to the latest 20-Year auction,

although the long end has built on its outperformance, as longer dated swap

rates continue to ease.

- Looking at the results of the supply, the low price came in higher than the

exp. 98.00, as the bid to cover ratio edged higher, although the tail edged out

to 0.3bp from 0.2bp at the previous auction.