JGBs have been a little less reactive to the...>

JGBS: JGBs have been a little less reactive to the RBNZ, with the long end of

the curve firming ahead of 30-Year supply, on the back of some underperformance

yesterday. Today's 30-Year JGB auction could have knock on effects for global

bonds. In outright terms, the benchmark 30-Year yield has operated in a ~20bp

range in the time since the most recent auction, touching the highest level seen

since October of last year, of course inspired by the tweaks to the BOJ's YCC.

While the headline yields seem attractive, the auction will be a test of

super-long demand against the backdrop of the BoJ-induced volatility. The

volatility has seemingly discouraged Japanese life insurers from entering the

market, with a focus on where 10-Year yields will settle. 0.8% is usually viewed

as a threshold in the tenor, whereby life-insurers typically become more active.

- Some suggest that the line looks cheap on the curve, and point to this

supporting demand.

- Futures have stuck to a tight range, with attempts to rebound limited by the

150.17 level, keeping the focus on the downside. Intraday support is placed at

150.03, but a break below will return the focus to 149.95.