JGB's head into the close higher in a quiet....>

JGBS: JGB's head into the close higher in a quiet post-FOMC session. Futures

squeezed out some gains during the overnight session, but saw a muted reaction

to the FOMC. JGB futures opened Tokyo around 9 ticks higher and saw rangebound

trade in the early part of the session before being bid up to around 150.25

heading into the lunch break. 

- After the lunch break came the 3-Month and 2-Year auction, both taken

strongly. The low price was above the consensus estimate in the 2-Year, and

while cover dropped to 5.35 from 6.79, the June 27 sale was the strongest cover

since 2014 and was still above 5.06 at the May sale. The strength of the results

initially saw a bid in JGB's before some profit taking erased most of this gain.

JGB futures head into the close at 150.22, up 11 ticks on the day.

- Yields are lower across the curve, down 0.3bp-1bp with the curve flattening

slightly. 10-Year yield last -0.7bp at 0.072%. The long end has seen some decent

buying, sources note supply and demand seems relatively tight in the sector

prompting outperformance of swaps in the sector.