JGB's finished higher yesterday, initially.....>

JGBS: JGB's finished higher yesterday, initially taking a dip lower then rising

in the afternoon session with sources noting some short covering after the move

higher in US tsys late last week and buying in the long end with the yield curve

flattening. The main event today will be the Y1tln 20-Year auction. 

- JGB Opening Call Barclays: "Today could see the market hold firm overall, but

trade in a range on concern about elevated prices after USTs showed little price

action overnight. We believe 20y JGBs look rich near current levels (WI close on

21 August: 0.555%) and see no need to be particularly aggressive at today's

auction (JL161) from a riskreward perspective. We are bullish on high-carry 20y

JGBs at yields of 0.60% or higher as a medium/long-term trade under the BoJ's

current yield curve controls. Shorter term, however, we believe carry trades

(long 20s) could be unwound ahead of Jackson Hole (24-26 August; see Japan Rates

Strategy: Potential for 20y JGBs to correct in short term, 17 August 2017)."