JGB futures were the underperformer amongst....>

JGBS: JGB futures were the underperformer amongst core FI, with the contract

last -19, threatening a break below 152.00. Little in the way of clear driver

for the move in futures, perhaps some focus on the upcoming announcements re:

investment intentions for the large life insurers was evident? Although that

didn't translate to the longer end of the cash curve, which saw light

outperformance, along with 2s. Meanwhile, 7s underperformed, so the move may

have been futures driven. Swaps were generally wider across the curve.

- 1-3 Year BoJ Rinban ops saw the purchase size remain unch. while the

offer/cover ratio moved higher and spreads seen at the ops widened vs. prev ops

covering that bucket.

- On the news front, the junior ruling coalition party leader has pushed for

unrestricted cash handouts in Japan, free of income constraints, which PM Abe is

apparently considering, while the Nikkei pointed to the potential formation of a

Y1.5tn lending support program for Tokyo SMEs.

- A 5-15.5 Year liquidity enhancement auction headlines the local docket

tomorrow.