JGBs continued their recent foray higher in....>

JGBS: JGBs continued their recent foray higher in Friday's morning session, as

futures broke Thursday's and the Aug 31 high, with modest curve flattening

supported by a continued dip in longer dated swap rates.

- The bid may have been aided by late headlines Thursday pointing to President

Trump hinting to the WSJ that a trade fight with Japan "could be next," but upon

second glance the article was less inflammatory than the headlines The stronger

JPY weighed on the Nikkei 225 which shed 1.0% in the morning session, which also

lent support to JGBs in early dealing.

- A strong liquidity enchantment auction for 1-5 Year paper did little for the

space in the afternoon, with the shorter end of the curve underperforming as the

long end moved back to neutral as a degree of profit taking crept in ahead of

the weekend, with further softening apparent during the overnight session.

- Rinban operations, alongside 5- & 30-Year supply headline this week.