JGB markets taking a leg lower in early........>

JGBS: JGB markets taking a leg lower in early trade, a downside move in US tsys

has hit global bond markets. The move comes amid thin volumes with thin summer

news flow. 

- JGB futures opened at 150.78 and dropped to a session low of 150.69, taking

out that Aug 17 Tokyo session high from Aug 17 of 150.72.

- The drop comes despite expectations for a firmer trend in JGB's today, and a

sell off in equities in Japan.

- Sources note that the 10-Year sector in Japan is suffering with yields holding

below the 0.05% level which is seen as a threshold for buy and hold interest, as

a result receiving has been seen in 7 & 10-Year swaps. 10-Year yield today up

1bp at 0,043% after hitting the lowest level since May 8 on Friday.

- Futures last up 1 tick compared to Friday's close at 150.72, but down 6 ticks

from the open and down 14 ticks from the overnight high on Friday.