JGB futures were dragged lower overnight.......>

JGBS: JGB futures were dragged lower overnight with the initial bout of pressure

coming on the back of a BBG BoJ sources piece which noted that "BoJ off'ls see a

need to keep a lower limit on JGB yields, with some of them seeing that limit

around -0.3%, according to people familiar with the matter. Some off'ls at the

central bank viewed rock-bottom yield levels that touched -0.295% earlier this

month as close to a point requiring action, according to the people. More

factors than simply the level would be taken into account before acting to keep

yields in check, but a lasting move or a surge below a lower limit would prompt

consideration of further action, the people said." The post ECB inspired whip

then saw the contract touch an overnight high before easing to fresh lows,

following core global FI. Futures finished the overnight session -22 ticks after

Tokyo trade saw the curve twist steepen as 30- & 40-Year paper underperformed,

largely driven by the internals in the latest round of 5-25+ Year Rinban ops.

- An enhanced liquidity auction for 5-15.5 Year JGBs, as well as final

industrial production and capacity utilisation data provide the points of

interest on the local docket today.