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

JGBS: JGB futures went into the lunch break at 150.76 (-9 ticks). The longer end

of the curve has undergone a bout of underperformance in lieu of yesterday's

soft 20-Year JGB supply, with the curve ever so slightly steeper again today.

- The BoJ left the size of its 5-25+ Year Rinban operations unchanged today.

Looking at the breakdown of the operations, the offer to cover ratio moderated

in the 5-10 Year bucket, although the spread moved further into positive

territory. Looking at the 10-25 Year bucket, the offer to cover ratio plummeted

from 3.9 to 2.3, although the spread once again moved into positive territory.

The offer to cover ratio also eased in the 25+ Year bucket, although once again,

the spread moved further into positive territory.

- From a technical perspective the close below 150.83 to start the week has been

followed up with closes below the 55- & 100-DMAs with immediate focus now on the

200-DMA (150.65). Bulls now need a close above yesterday's hourly resistance

(150.86) to gain breathing room.