JGBs have struggled for direction, with the....>

JGBS: JGBs have struggled for direction, with the cash curve operating in mixed

fashion and futures a touch higher, as the space has failed to benefit from the

outlining of the latest round of U.S. sanctions on China. The super-long end has

actually experienced some modest underperformance for a second consecutive day.

- The BOJ left the size of the Rinban operations covering the 1-10 Year sector

of the curve unchanged. Looking at the breakdown of the operations, the offer to

cover ratio in the 1-3 & 3-5 Year buckets moderated, while the offer to cover

ratio in the 5-10 Year bucket moved higher.

- Bulls look to 151.02-19 in futures, where the 2018 & monthly highs are

situated. Daily studies looking to correct from modestly overbought levels and

the lack of topside follow through remain concerns for bulls. In saying that,

bears still need a close below 150.89 to signal a false break higher and return

initial focus to 150.71-80.