JGB's head into the close lower, futures.......>

JGBS: JGB's head into the close lower, futures last down 12 ticks at 150.30.

JGB's were on the back foot from the open, pressured by losses on Friday in

UST's, there was a brief recovery heading into the lunch break as the BoJ

reassured markets of their dovish tilt, saying that BoJ Governor Kuroda did not

revise the inflation outlook in Davos. 

- JGB's came under pressure from a sharp sell off in UST's, some stop loss

selling triggered by TYH8 making new lows for the month and the 10-Year yield

rising above 2.68% saw heavy volumes, around 35k contracts traded the move lower

from 122.01 to 121.27, on the session was a whole volume was about 1.6x average.

- The BoJ conducted purchase operations in the <1 Year, 5-10 Year and linker

sectors - all sizes were kept unchanged. The 5-10 Year saw an offer/cover of

3.4x, the lowest since early December, but the lack of yield discount meant that

follow through was limited. Yields higher, led by the belly, 10-Year yield last

up 0.9bp at 0.086%.

- Some focus on the meeting of MoF, BoJ and FSA at 1640JST/0730GMT.