JGB's head into the close slightly higher,.....>

JGBS: JGB's head into the close slightly higher, recovering in the afternoon

after spending much of Tokyo hours negative. JGB's were under pressure from the

open, some profit taking after gains alongside UST's in the overnight session as

well as a hangover from a weak 10-Year auction on Tuesday. Yields lower across

the curve, moves fairly parallel. 10-Year yield last flat at 0.061%.

- JGB's remained under pressure in the morning, dropping to session lows of

150.84 the Alternating Hourly Support/Resistance, before some dip buying saw a

bounce into the afternoon session. Comments from BoJ's Masai also supported

JGB's, Masai said that easy policy was still needed until inflation hit the

target, but did note risks from QE.

- The BoJ bought JGB's in <1-Year and 5-10 Year sectors, cover in the 5-10 Year

fell slightly to 3.67 from 3.91 last time out which strengthened JGB's in the

afternoon, the Nikkei fell 445 points on the session, much of the drop in later

trade. MOF sold 6-Month bills, the auction was stronger than the bill auction

earlier this week, the yield stopped out at -0.1442%, cover fell slightly to

5.21x from 5.52x.