JGBS: JGB's finished the session higher........>

JGBS: JGBS: JGB's finished the session higher yesterday, rising throughout the

afternoon session despite the geopolitical climate and fall in UST's, trade

remained thin during the Obon Holiday's. The curve twist steepened, the short

end seeing some decent buying despite the 5-Year auction later this week. The

long end initially sold off but saw some dip buying late on to push the 20-Year

yield into negative territory. Markets will focus on the BoJ buying operations

in the 5-10 Year sector with speculation that the sector could be reduced from

the current Y470bln. 

- JGB Opening Call Barclays: "Today could see the curve continue to steepen

slightly in thin trade after USTs fell further overnight. The BoJ is scheduled

to hold buying operations for 5-10y and 10y+ issues today. With 10y yields

falling below 5bp, one focus will be whether the size of the offer for 5-10y

issues is reduced to JPY450bn from the recent JPY470bn."