JGBs futures went into the lunch break at......>

JGBS: JGBs futures went into the lunch break at 150.86 (-3 ticks), with the

10-30 Year sector of the curve underperforming in cash dealing.

- Longer dated paper opened lower and never really looked like recovering in the

morning session as markets shrugged off the US-led bombing campaign on Syria.

- The likes of Morgan Stanley MUFG & JPMorgan hold bullish outlooks for the long

end of the curve based upon the supply/demand mix & heightened USD funding

costs.

- From a technical perspective JGB futures 151.06 resistance confirmed

significance with gains defining last week largely negated by the rejection

ahead of this level. Bears now look for a close below 150.85 to shift initial

focus back to the 150.65-77 support region where 55 & 200-DMAs are situated.

Bulls now need a close above 151.06 to confirm a shift in focus to 151.15-21.