JGB's head into the close higher, but off......>

JGBS: JGB's head into the close higher, but off session highs as the risk off

move in Asia pares heading into European trade. JGB futures finished up 16 ticks

at 150.48, having hit highs of 150.63 earlier in the session. The gain was

dictated by a late risk off move in the US that saw another wave during Asia-Pac

hours, the Nikkei 225 was at one point down 7% and is now in technical

correction territory having fallen 10% from Jan 23 highs. The BoJ will likely be

happy, the 10-Year yield finished the session down 0.6bp at 0.078%, further

retreating from the 0.10% levels that saw the BoJ intervene last week. The BoJ

will hold their first purchase operations of the week tomorrow.

- There were dovish comments from BoJ Gov Kuroda and Japanese PM Abe during the

session, these failed to exert any effects and markets followed moves in UST's

and US equity futures. Volumes were robust across the asset classes during the

session, around 2x average, MNI sources note most driven by algo trading. Yield

curve bull flattened, 2-/20-Year spread 0.6bp tighter. MOF sold 10-Year linkers,

the sale was taken smoothly covered 3.382x (prev. 3.099) despite fears that

falling stocks/rising yen could impact the sale.