JGBs have started the day off on the front.....>

JGBS: JGBs have started the day off on the front foot, with the 10-year future

rising 12bps to extend Friday's gains and trade at 150.39. 

- Renewed concerns surrounding the Turkish lira are no doubt aiding the recover.

The 21-DMA at 150.48 is the next level of resistance, and a break above here

would shift the focus back to the July 31 highs. 

- It is a quiet day for news in Japan today, with no Rinban operations or bond

issuance to move the market. Price action will likely be dominated by headline

risk out of Turkey as the correlations across DM bond yields has surged over

recent trading. 

- One interesting trend developing though is the rise in real yields, with

10-year inflation-linked bonds rising 15bps since the start of August to 11

month highs, even as US and German real yields have fallen. A rare tightening of

financial conditions may begin to test the BOJ's resolve regarding reducing

monetary accommodation.