JGB's head into the close mixed, 10-Year.......>

JGBS: JGB's head into the close mixed, 10-Year future is down 2 ticks at 150.45.

The morning session was quiet for JGB's ahead of the 5-Year auction, futures saw

a narrow range. JGB's rose at the start of the afternoon session, hitting 150.52

before selling off in to the close. Futures touched 150.43, the Jan 12 low,

before bouncing. The sell off was driven as the Nikkei 225 jumped in the

afternoon, closing 236 points higher at the highest levels since 1991.

- Yields higher across the curve, seeing some bear steepening. 5-Year sector

faring slightly better after the strong auction. The auction stopped out at a

high yield of -0.082%, with a bid/cover of 5.236 - the highest since August

2013. Almost 70% of the issue was taken by 3 bidders, MUFJ, Nomura and Daiwa.

- There are Y3.2tln of redemptions due in January, around Y2.5tln of which falls

this week which supported the auction along with a 10% reduction in FY2018

5-Year issuance.

- 10-Year yield last up 0.4bp at 0.081%, jumping as the sector sold off.

2-/30-Year spread 0.4bp wider.