JGB futures were hit on the back of the move...>

JGBS: JGB futures were hit on the back of the move lower in Tsys, but technical

support held firm, while the Nikkei 225 struggled. The space then rebounded

after the BoJ left the size of its 1-5 Year Rinban operations unchanged, before

edging lower again.

- Offer to cover ratios for the Bank's latest round of Rinban operations: 1-3

Year 3.93x (prev. 2.75x), 3-5 Year 5.09x (prev. 2.41x), JGBis 6.29x (prev.

4.68x).

- The elevated offer to cover ratios did little to help the space during the

afternoon session, with the earlier steepening flows back in fashion after the

lunch break.

- JGB futures trade 6 ticks lower at writing.

- Focus tomorrow moves to Japanese retail sales and an address from BoJ Deputy

Governor Wakatabe. 2-Year supply will also provide some interest.