JGB futures were pressured by a Y20bn..........>

JGBS: JGB futures were pressured by a Y20bn reduction in the size of the BoJ's

latest 10-25 Year Rinban ops, with that area of the curve underperforming in

cash trade. A quick look at the breakdown in the latest round of BoJ Rinban ops

points to nothing of real note on the offer/cover side, with notional offered

amounts quite steady vs. the prev. ops across the respective buckets. Small

upticks were seen in the 3-5 & 25+ Year buckets' cover ratios. Elsewhere, the

size of the 10-25 Year ops was cut, so a smaller round of offers was offset,

boosting the offer to cover ratio for that bucket. 1-5 Year buckets saw the

yield spreads move further into +ve territory, with the spreads applied to the

10-25+ Year buckets moving into +ve territory vs. the -ve spreads last time out.

- BoJ Governor Kuroda & his Deputy Amamiya offered up little new re: MonPol in

their latest addresses, although Kuroda suggested that the MoF could issue more

super-long JGBS to avoid a drop in yields, once again expressing his preference

for a steeper yield curve.

- JGB futures last print 51 ticks lower vs. settlement, at worst levels , with a

degree of catch up also evident after the long weekend in Tokyo.