JGB futures went into the lunch break 1 tick...>

JGBS: JGB futures went into the lunch break 1 tick lower at 150.84, as the

uptick in domestic equities weighed on the space.

- Cash bonds were little changed, with the 3-Year sector underperforming for a

second consecutive day.

- As a reminder the JGB month-end extension estimate is larger than the 12-month

average, however, it is in line with last March's duration extension.

- Swap spreads were mostly wider across the curve excluding the 3-Year tenor.

- From a technical perspective Future's failure around 151.06 leaves the space

looking a little heavy. Bears need a close below 150.82 to shift focus back to

layers of support 150.55-73 where 55, 100 & 200-DMAs are located. Bulls now need

a close above 151.06 to reconfirm initial focus on 151.12-19 where the Bollinger

top, 2018 high and Nov monthly high are located.