JGB's are lower heading into the close.........>

JGBS: JGB's are lower heading into the close today, selling off for the first

day in 6 after hitting the dizzying highs of 151.35. Sources note that JGB

futures looked overbought at these levels and the drop at the open as

geopolitical concerns faded likely triggered a bout of profit taking.

- JGB futures bottomed out at 151.09 just before the lunch break and bounced to

around 151.20 in the afternoon, encouraged by the BoJ's decision not to cut

purchases in the final operations of the month despite Yields on the 10-Year

briefly touching the lowest since April yesterday at 0.00%. The Bank will

release their September buying plan tomorrow.

- Yields rose across the curve, the sell off led by the futures sensitive 7-10

Year sector with yields up 1-1.4bp in the sector, 10-Year yield last up 1bp at

0.015%. Buying in the long end has been more sparse with yields essentially

flat.

- Data in the session was ignored, retail sales bet expectations on both the

monthly and annual readings.