JGB futures went in to the lunch.......>

AUSSIE BONDS: JGB futures went in to the lunch break 1 tick higher at 151.01 as

the super-long end experienced modest outperformance in cash dealing.

- JGBs operated in a narrow range, with a lack of tier one news flow & economic

releases apparent.

- The latest round of political scandal surrounding PM Abe's wife was absorbed

by the market, as many headlines surrounding the matter had been run over the

weekend.

- The latest round of BoJ Rinban operations covering the 5-25+ Year buckets saw

a slight pickup in the offer to cover ratio across all 3 maturity groups, so

could exert some pressure on the space in afternoon dealing.

- For futures, recent volatility has resulted in pressure returning to the

151.18-19 region where the Bollinger band top is situated. Bulls continue to

look for a close above 151.19 to initially target 151.51 2017 highs. The

Bollinger band top is the key concern for bulls with potential to limit follow

through. Bears still need a close below 150.89 to ease bullish pressure and

below 150.51 to target 2018 lows.