JGB's futures ticked higher, as the cash.......>

JGBS: JGB's futures ticked higher, as the cash curve operated in marginally

mixed territory, with the short end outperforming on the day.

- The BOJ's Rinban ops took centre stage. The ops covered the 1-5 & 10-25+ Year

buckets & represented the first ops conducted this month. As a reminder the BOJ

trimmed the number of purchases of the 1-10 Year buckets in its September Rinban

ops to 5 (prev. 6), although in all the buckets where the Bank trimmed the

number of monthly purchases, it also upped the potential size of the purchases

(by rising the upper limit of the permitted purchase size band by Y100bn). Some

suggested that the move was a result of calendar effects i.e. a limited amount

of eligible purchase days during the month of Sep, which rang true as the Bank

upped the size of its ops covering the 1-3 & 3-5 Year buckets by 50bn a piece,

when compared to the most recent ops covering the same maturities, which

supported shorter dated paper.

- The offer to cover ratios of the ops can be seen below:

- 1-3 Year: 2.91 (prev. 3.29), 3-5 Year: 2.85 (prev. 3.41), 10-25 Year: 3.31

(prev. 3.47), 25+ Year: 4.08 (prev. 3.69).