JGB's closer higher on Tuesday, sources........>

JGBS: JGB's closer higher on Tuesday, sources noting signs of a short squeeze in

futures due to the roll (last trading day Dec 13) already evident. The curve

twist steepened marginally, the super long sector slightly soggy due to medicore

results of the 40-Year auction. JGB's were also supported by dovish comments

from BoJ Gov Kuroda, BoJ's Kataoka and PM Abe.

- JGB futures gaining early in Tokyo trade, supported by reports of another

missile launch from North Korea, the first since September and said to be the

highest they have conducted.

- JGB Opening Call Barclays: "Today could see buyers initially take the upper

hand around the futures sector on favorable supply and demand after futures

extended their gains overnight, but the superlong end could remain vulnerable to

selling pressures amid uncertainty around BoJ buying operations going forward.

We expect the curve to continue to steepen beyond the 7y sector. The BoJ is

scheduled to hold buying operations for 5-10y and 10y+ issues today."