JGB's had an uneventful session to end the.....>

JGBS: JGB's had an uneventful session to end the week after dropping sharply in

the afternoon session yesterday. JGB's were bid at the open, moving in tandem

with global bonds, after more signs of US political strain and the terrorist

attack in Barcelone. An initial spike quickly gave way to rangebound trade with

some profit taking noted at the 150.70 resistance, the afternoon session high

from August 17. But inital gains were supported by broad risk off sentiment with

the Nikkei dropping to the lowest level since May 2.

- It was a quiet session to end the week with just the BoJ purchase operations

for JGB traders go to on. There was some speculation that the BoJ could reduce

the 5-10 Year purchases further, this did not come to fruition and with the

operations smoothly taken down JGB's saw little reaction.

- Sources say trade should pick up next with the end of the Obon Festival in

Japan with volumes especially thin this week. 

- Yields fell across the curve with moves mixed, 10-Year yield last down 0.9bp

at -0.048%. Swaps outperformed yields in the long end though the superlong

sector looks rich on the Z-Spread.