JGB's fell yesterday taking their lead from....>

JGBS: JGB's fell yesterday taking their lead from UST's after the tax bill

package at the weekened, trading was also subdued ahead of today's 10-Year

auction. Trade was quiet and fairly thin, long end swaps outperformed the yield

curve ahead of supply this week. BoJ Gov Kuroda offered some support for JGB's

when he said that continuation of easy monetary policy was necessary.

- JGB Opening Call Barclays: "Today could see sellers take a slight upper hand

around the long end ahead of the 10y auction (JB349). We expect somewhat soft

results at the auction assuming yields near current levels (WI close: 0.05%),

given that: 1) the sector is somewhat rich in terms of both level and relative

value, even when factoring in the new issue premium; 2) next week brings ECB and

FOMC meetings and the earliest JB349 will be eligible for purchase by the BoJ is

18 December; and 3) expectations for the BoJ to normalize monetary policy have

recently strengthened somewhat."