JGB's fell yesterday, the futures contract.....>

JGBS: JGB's fell yesterday, the futures contract rolling into JBZ7 saw sharp

declines after the unwinding of risk off positions put on over the past few

weeks. The sell off was accelerated after a weak 5-Year auction that saw the

weakest bid/cover since May. Moves were mixed across the curve, the futures

sensitive 10-Year sector led the way and some twist flattening seen beyond the

10-Year sector. 

- JGB Opening Call Barclays: "Today could see sellers continue to take the upper

hand overall on JPY depreciation and share price gains driven by risk-on

sentiment amid the continuing decline in US and European bonds overnight. With

the pullback in geopolitical risk and completed roll of futures contracts, we

believe the richness around the futures sector could correct another notch. The

BoJ is scheduled to hold buying operations for 1-5y and 5-10y issues."