JGB's closed essentially flat on Wednesday.....>

JGBS: JGB's closed essentially flat on Wednesday having seen a tight range

during the session, yields were slightly lower across the curve. The BoJ bought

5-10 Year JGB's from the market, the operation was taken down well and firm

results supported JGB's in the afternoon. Reports that Trump could move the

middle east embassy in Israel to Jerusalem engendered a risk off tone which saw

the Nikkei fall for the third day and post its biggest decline in 2017.

- Opening Call Barclays: "Today could see buyers initially take a slight upper

hand overall amid deteriorating risk sentiment after USTs extended their gains

overnight. Thereafter, we look for a smooth 30y auction with the superlong end

outperforming on the curve. We expect the 30y JGB auction (JX57) to produce firm

results assuming yields near current levels (WI close on 6 December: 0.845%).

Although current levels are familiar, they should spur a certain amount of

demand given that: 1) the curve could tend to bull-flatten into year-end due to

reinvestment demand linked to the heavy redemptions in December; 2) the second

half of the month brings few auctions, but numerous buying operations for 10y+

issues; 3) the uptrend in share prices has taken a breather into December."