JGB futures unwound their overnight losses.....>

JGBS: JGB futures unwound their overnight losses in morning trade, hitting the

lunch break 2 ticks above settlement levels, in relatively limited trade. Yields

marginally mixed across the curve.

- Risk aversion was evident, with local equity markets edging lower and the JPY

sitting atop the G10 FX leader board.

- The latest round of industrial production and retails sales data was weak,

while Tokyo CPI topped expectations as the labour market report roughly met

consensus.

- We also heard from Finance Minister Aso, who ruled out tax hikes to help

offset any budget gap.

- Elsewhere, the BoJ left the size of its 3-25 Year Rinban ops unchanged, with

the offer/cover ratios unchanged to a little higher vs. prev. ops (most notable

move came via an uptick for the 10-25 Year bucket's metric), with spreads little

changed to a touch tighter.