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

JGBS: JGB futures were hit on the back of the move lower in Tsys in early Asia

hours Wednesday, but technical support held firm and was respected on a closing

basis, 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.

- Futures drifted lower again overnight, tracking Tsys and having a look below

the Tokyo lows, but lacking follow through.

- Local interest comes in the form of retail sales and an address from BoJ

Deputy Governor Wakatabe later today.