JGB futures went into the lunch break...>

JGB SUMMARY: JGB futures went into the lunch break 3 ticks higher at 150.53,

after printing highs of 150.58 following yesterday's holiday.

- Price action has been relatively muted, despite Prime Minister Abe stating

that he has made no firm decision on who will be the next BoJ Governor. We also

heard from the Bank's current Governor, Haruhiko Kuroda, who reiterated that the

central bank needs to maintain its ultra-loose monetary policy stance.

- Today's Rinban operations saw the BoJ offer to buy Y50bln worth of JGBs with

under 1 year to maturity and Y450bln worth of JGBs with 5-10 years to maturity.

These sizes were unchanged from the prior operations in each sector, with no

reaction seen in JGBs as a result.

- 10-Year JGBs are currently underperforming their longer dated counterparts in

cash dealing, with yields in the benchmark 10 year edging 0.5bps higher. The 4-5

year sector has experienced some modest underperformance, potentially pointing

to a degree of concession ahead of tomorrow's 5-Year supply. The Nikkei 225 is

following global indices higher after the long w/e, although it lags its

regional counterparts, while USDJPY has operated within a 20 tick range.