JGB's close higher on the day, futures last....>

JGBS: JGB's close higher on the day, futures last up 8 ticks at 150.42 in fairly

listless Tokyo trade. JGB's rose on the open following lower than expected

Japanese CPI figures, a dovish set of BoJ minutes and dovish comments from BoJ

Governor Kuroda at Davos who confirmed that it was too early to be considering

exiting stimulus measures. After the bump higher at the open futures moved in a

narrow range.

- The BoJ purchases 1-3, 3-5, 10-25 and 25+ Year JGB's as well as T-Bills. All

JGB purchases were kept unchanged, the operations were taken down smoothly with

offer/cover ratios broadly in line with previous operations. The exception was

the 25+ Year sector which rose to 3.74x from 2.9x last time out, while the

spread showed lower prices. 

- Despite the weaker purchase op result the long end was well bid during the

session, 40-Year yield down 1.4bp at 0.967%. This is being attributed to swap

activity in the long end, LCH/JSCC swaps have tightened as foreign accounts

reverse positions. Curve flattens, 10-Year yield down 0.6bp at 0.079%,

2-/30-Year spread 1bp tighter.