JGB futures trickled lower in Tuesday's........>

JGBS: JGB futures trickled lower in Tuesday's 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 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 had a limited reaction to the latest 20-Year auction, although the

long end built on its outperformance, as longer dated swap rates continued 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.

- Focus today turns to Rinban operations covering the 5-25+ Year buckets.