JGB's briefly touch 150.15 shortly after the...>

JGBS: JGB's briefly touch 150.15 shortly after the open in Tokyo, before

reassurances from BoJ Gov Kuroda in DIET help spur a bid, Kuroda said that the

BoJ will continue easing until the price target is hit. Kuroda noted that the

Bank expects the 2% target to be hit in the FY2019. JGB futures last up 3 ticks

at 150.20.

- JGB outlook Barlcays: "With USTs continuing to fall overnight, today could see

sellers continue to take a slight upper hand in the long end of the JGB market

despite some support from expectations for BoJ buying operations. The BoJ is

scheduled to hold operations for 1-5y and 10y+ issues. We expect the offer sizes

to be unchanged. That said, given that the BoJ conducted fixed-rate operations

when 10y JGBs touched 0.10% on 7 July (operation purchasing rate for 10y:

0.11%), and in order to reign in expectations for BoJ normalization, we believe

it could quickly conduct such operations at the same level if yields revisit

0.10%. We expect the BoJ to leave the purchasing ranges unchanged in its

February buying operation plans due for release this evening given that the

January ranges leave an adequate buffer to adjust recent operation sizes."