JGB traders return from the elongated..........>

JGBS: JGB traders return from the elongated weekend today. As a reminder Friday

provided a quiet session for the space as yields hovered around neutral levels

in cash dealing, with some slight underperformance in 3-5 Year paper in the

afternoon as the offer to cover ratio in the latest Rinban operation covering

the zone ticked slightly higher.

- The BOJ left the size of its Rinban operations covering the 1-5 Year buckets

unch. The offer to cover ratios of the operations can be found below:

- 1-3 Year: 3.10 (prev. 3.26) - 3-5 Year 3.92 (prev. 3.78)

- Futures stuck to a 4 tick range in the Tokyo session.

- Comments from Japanese PM Abe had little to no impact on the space. The

Japanese PM noted that "he doesn't think that easing should go on forever,"

although Abe did stress that "it is up to the BOJ to decide when to end easy

policy."

- Focus now turns to the BOJ MonPol decision & ruling LDP party leadership

election due later this week, with focus also on the Rinban operations.