JGB's head into the close lower on Monday,.....>

JGBS: JGB's head into the close lower on Monday, futures last down 9 ticks at

150.93. JGB's were under pressure from the open after a sharp drop in US Tsy

markets after the US Senate passed their version of the tax bill. There was

little directional impetus from domestic sources during the session, BoJ Gov

Kuroda repeated that accomodative policy was still needed, while the Consumer

Confidence Index rose slightly to 44.9 from 44.5 and was in line with estimates.

- JGB's sold off sharply early in the session, and saw tight rangebound trade

during the morning session. In the afternoon some additional selling pushed

futures to session lows at 150.92.

- Moves fairly mixed across the curve, 10-Year and 30-Year buckets seeing some

extra selling ahead of the 10-Year and 30-Year auctions on Tuesday and Thursday

respectively this week. 10-Year yield last up 0.8bp at 0.043%

- In swaps the curve steepened during the session, the 30-Year sector moving 1bp

higher ahead of the auction and outperforming JGB yields.