JGB's fell on Thursday, the move initially.....>

JGBS: JGB's fell on Thursday, the move initially driven lower by a sell off in

EGB's and UST's, weaker than expected Japanese Industrial Production did little

to support JGB's. The MOF sold 2-Year paper, solid demand helped bring JGB's off

their lows in the afternoon session. Buying was seen in the wings with the short

end supported by the auction and the long end seeing some month-end buying.

- The BoJ came out with their December purchase plan after market, the bank

mostly kept the ops unchanged, but did cut the range for <1 Year ops to

Y10-100bln from Y50-100bln.

- In the US tsys continued to sell off on optimism for tax reform, the 10-Year

yield broke above 2.40%.

- JGB Opening Call Barclays: "Today could see the JGB market switch to a selling

bias around the superlong end on JPY depreciation/equity strength and the

abovementioned surprise schedule for BoJ buying operations (10y+ issues) after

USTs continued to fall overnight. The BoJ is scheduled to hold buying operations

for 1-5y and 5-10y issues."