JGB futures went into the lunch break 7........>

JGBS: JGB futures went into the lunch break 7 ticks higher at 150.98, with the

curve sitting flatter as the long end continued to outperform.

- Futures followed broader fixed income assets lower in early dealing, as the

June 12 US-North Korea summit seems a more likely proposition than it did 48

hours ago, with Trump seemingly a little more upbeat on the matter in comments

made over the weekend. Also, the Italian President blocked the formation of the

M5S/League government as a euro-sceptic was proposed as the economy minister,

which will likely send Italy back to the polling booths.

- Futures have managed to recover, finishing the morning session around best

levels, perhaps supported by larger than average month-end flows (according mo

Morgan Stanley's estimates).

- Futures' closes above the 55-DMA provided the impetus for a close above 150.95

on Friday and focus is now on 151.03-19 where the YtD & November 2017 highs are

located. The Bollinger top (150.99) is the key concern for bulls and currently

caps. Bears now need a close below 150.93 to gain breathing room and target a

correction lower.