JGB futures went into the lunch break 2........>

JGBS: JGB futures went into the lunch break 2 ticks higher on the day, back from

best levels, after the initial move higher, on the back of broader, modest risk

aversion, lacked any notable follow through. JPY strength faded after the 10:00

Tokyo fix, with the Nikkei 225 moving off of worst levels. Yields across the

curve are virtually unchanged on the day with the 10-Year JGB yielding 0.0% at

the lunch break.

- A positive day for Chinese stocks & the yuan thus far has seemingly limited

broader risk-off flows.

- BoJ left the size of its 1-5 & 10-25+ Year Rinban ops unchanged today. Offer

to cover ratios as follows:

- 1-3 Year 3.49 (prev. 2.35), 3-5 Year 2.53 (prev. 2.23), 10-25 Year 2.02 (prev.

2.61), 25+ Year 2.75 (prev. 3.68)

- Worth noting the BoJ released its Dec meeting minutes today, with 1 member

saying that there is room for revising JGB buying.