JGB's head into the close higher on Tuesday,...>

JGBS: JGB's head into the close higher on Tuesday, but well off session highs

seen shortly after the open on Tokyo, 10-Year future hit a high of 151.05 early

on before a bout of profit taking saw prices hit 150.97. Futures then saw

rangebound trade for the rest of the session, and last trade at 150.97, up 4

ticks.

- Yields mixed across the curve, the belly outperforming led by gains in

futures. 10-Year yield last down 0.5bp at 0.038%.

- The MOF sold 40-Year debt, the sale was mediocre by historical standards, but

the results saw little reaction across the curve. The cover slid to 3.00 from

3.24 in September (though this was the highest level in 2 years) and was

modestly below the 2017 average of 3.041. The high yield stopped out at 1.005%,

above the 1.00% estimate.

- JGB's were supported by comments from BoJ policy makers and PM Abe. Kuroda

played down his "reversal rate" comments last week, saying it was not time to

consider this yet, while Abe said he hoped the BoJ would continue their easing

until 2% inflation target hit.