JGB's head into the close mostly flat on the...>

JGBS: JGB's head into the close mostly flat on the day, 10-Year future down 1

tick at 150.47. JGB futures rose at the open building on the recovery in the

overnight session as UST's saw a bid late on Friday to recover from the post CPI

sell off. After reaching their zenith in early trade at 150.56, just above the

Jan 12 high, the market sold off into the lunch break. At the time the market

seemed to ignore some slightly less dovish comments from BoJ Gov Kuroda, but the

sell off could be a possibly delayed reaction. Kuroda was upbeat on the economy

and the 2% inflation target and said the BoJ would continue easing, but dropped

the reference to "aggressive, powerful easing".

- The BoJ purchases 5-10, 10-25 and 25+ Year JGB's, all sizes were kept

unchanged. The results showed slightly stronger offer/cover in the 5-10 Year

sector, MNI sources note that there is some trepidation around this sector now

after cuts last week.

- Yields broadly flat across the curve, 10-Year yield last up 0.1bp at 0.079%.

The MOF will sell 5-Year and 30-Year debt later this week, 20-Year sector seeing

some selling in an apparent auction concession with OTR 30-Year yielding 0.834%.