JGB futures turned bid in the early Tokyo......>

JGBS: JGB futures turned bid in the early Tokyo afternoon & last trade +23 ticks

on the day.

- The latest round of 20-Year JGB supply was seemingly the catalyst, although

the auction wasn't the most convincing, with the price & yield tails widening a

touch vs. priors & the cover ratio softening, but the low price was above dealer

exp. (proxied by the BBG dealer poll).

- The latter point garnered the most market reaction, providing some support for

both JGB futures and, more briefly, the super-long end of the curve. Short

covering demand may have helped support demand at the auction, in addition to

the well documented global risk backdrop, which seemingly outweighed any

uncertainty ahead of the impending Fed & BoJ MonPol decisions.

- There was little else to pen for the space.

- The aforementioned BoJ MonPol decision provides the highlight of tomorrow's

local docket.