JGBs once again stuck to a tight range.........>

JGBS: JGBs once again stuck to a tight range during the morning session, with

the cash curve struggling for direction.

- The BOJ left the size of its Rinban operations covering the 1-10 Year

operations unchanged, with the only notable change in the breakdown coming in

the form of an elevated offer to cover ratio in the 1-3 Year bucket, which

jumped to ~5.2 from ~3.7.

- This caused little reaction in the short end & belly. With longer dated paper

ticking higher in the afternoon as U.S. Tsys edged away from lows. 

- Bears have so far failed to capitalise on last Wednesday's sell-off in futures

with the recovery resulting in pops above the 100 & 200-DMAs. The 150.88-94

resistance region remains key today and has held firm thus far. Bulls need a

close above this region to return focus to the 151.02-19 resistance region.

Daily studies remain well placed for gains. Bears now need a close below 150.71

to gain breathing room and reconfirm initial focus on 150.53-60.