JGB's head into the close flat in muted........>

JGBS: JGB's head into the close flat in muted trade amid a lack of catalysts

during the session, markets focusing instead on the BoJ rate announcement

tomorrow. JGB futures last at 150.39, moving within a 6 tick range from 150.34

to 150.40. JGB futures moved to session highs in early on as the yen

strengthened over the US government shutdown and pushed Japanese stocks to

session lows. As the dollar recovered losses against the yen amid reports of a

vote in the Senate at 12pm EST on Monday, JGB's gave up their gains. The MOF

sold 5-15.5 Year debt in an enhanced liquidity auction, the sale drew decent

cover at 3.34 (prev. 3.13)

- There were some reports that the Japanese primary surplus target will be

pushed further back when the Cabinet Office releases the latest set of economic

forecasts this week. - Currently the estimated time frame is 2025 (pushed back

from 2020 when originally forecast), there are reports in the Nikkei Asian

Review that this will be reset to 2027.

- Yield curve mixed, seeing some flattening, there are some expectations that

Kuroda will take a dovish tone tomorrow. 10-Year yield -0.1bp at 0.083%.