JGB futures were lower in morning trade on.....>

JGBS: JGB futures were lower in morning trade on catch up from the elongated

weekend/fresh Sino-U.S. trade optimism, before wider spreads in the BoJ's 10-25+

Year Rinban ops added further pressure to the space, although it was the belly

of the curve that underperformed ahead of tomorrow's 5-Year supply. Also worth

noting that the offer to cover ratio in the 10-25 Year Rinban ops moderated to

3.70x (prev. 5.09x), while the 25+ Year ratio up ticked to 5.15x (prev. 4.29x).

- Contract at worst levels ahead of the close, last -24 ricks.

- Japanese Economy Minister Nishimura spoke, but offered little new, pointing to

a focus on external affairs and consumer sentiment remaining depressed, but

picking up from low levels.

- The headline metrics in the latest economy watchers survey were little

changed, and disappointed vs. exp.

- Flash machine tool orders and the aforementioned 5-Year auction headline the

local docket tomorrow. Should also note that BoJ Governor Kuroda will appear at

the Bank's branch management meeting.