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

JGBS: JGB futures went in to the lunch break unchanged at 150.78, ignoring the

modest bid that crept in to US Tsys in early Asia-Pac dealing. The longer end of

the curve (ex 40-Year) underperformed ahead of today's 20-Year supply, despite

most watchers holding a relatively upbeat view on the upcoming auction. 10-Year

yields were last 0.2bp higher at 0.058%.

- Much of the chatter re: Japanese lifers & pension names moving to unhedged

purchases of foreign debt following the recent bout of JPY strength is being

treated with caution by those within Japan.

- From a technical perspective the fresh 2018 highs see bulls gaining confidence

and they are currently focused on 150.90-151.02 where the daily bear channel top

is noted. A close above 151.02 is now needed to shift focus to 151.19-37.

Momentum divergence is seen as a concern for bulls. In saying that, bears need a

close below 150.71 to gain breathing room and return initial focus to 150.47-51.

Below 150.36 is needed to shift focus back to 150.09 2018 lows.