JGBs experienced an uninspiring morning........>

JGBS: JGBs experienced an uninspiring morning session, sticking to a tight range

in both futures and cash dealing.

- The BoJ left the size of its Rinban operations covering the 10-25+ Year sector

of the curve unchanged. Looking at the breakdown of the operations, the offer to

cover ratio for both the 10-25 & 25+ Year buckets held steady when compared to

the most recent operations.

- Topside follow through was lacking in futures last week with the contract

failing to gain traction above the 21-DMA (150.82). Bulls continue to look for a

close above 150.94 to confirm traction above the 21-DMA and return focus to the

151.02-19 resistance region. Daily studies approaching O/B are a concern for

bulls. Bears now need a close below 150.80 to gain breathing room and below

150.71 to reconfirm initial focus on 150.53-60.