JGBs edged lower in yesterday's morning........>

JGBS: JGBs edged lower in yesterday's morning session, paying attention to the

RTRS source piece released after the close on Monday which noted that interviews

with 12 people familiar with the BOJ's thinking reveal for "the first time that

there were plans to raise rates twice this year. In January, market turbulence

pulled the rug from under an announcement of an increase. The bank then hoped to

signal higher rates in Jul & raise them in Sep, but weak inflation data scuttled

that idea too." The curve finished a touch steeper.

- Fresh JGB shorts were set in the wake of the latest BoJ MonPol decision,

despite the initial short covering that came on the back of the initial

decision. This has led to 10-Year JGB futures assuming a structurally short

position. The short positioning likely came as a result of Governor Kuroda's

press conference, as he noted that the tolerable 10-Year yield trading band will

double in width i.e. -/+0.2%, and has been aided by a questionable 10-Year JGB

auction.

- Focus today falls on the summary of opinions from the BOJ's Jul MonPol

decision and 1-10 Year Rinban operations.