JGBs have operated in an orderly fashion,......>

JGBS: JGBs have operated in an orderly fashion, with futures entering the lunch

break 3 ticks lower at 150.86, as the cash curve ran steeper, although, 2-5 year

paper underperformed the belly.

- Swaps were tighter across the curve, outperforming JGBs as the swaps curve

steepened.

- Participants await the upcoming 10-Year JGB auction.

- Hesitation ahead of the 150.95-151.06 resistance region is less than ideal for

bulls with a close above the March 12 high (151.06) needed to shift focus

higher. Bears now need a close below the low from May 02 (150.77) to gain

breathing room and below the 200-DMA (150.69) to end bullish hopes. Daily

studies are largely neutral and as a result provide few clues.