JGB's opened Tokyo lower after drifting........>

JGBS: JGB's opened Tokyo lower after drifting downwards in the overnight

session. Futures saw a narrow range amid a lack of catalysts during the session,

10-Year futures opened Tokyo at 150.72 and moved in a range between 150.74 and

150.69. Futures last at 150.70, down 14 ticks on the session.

- JGB futures failed to make gains despite a drop in Japanese stocks, the Nikkei

225 fell some 281 points after dropping sharply on Thursday last week.

- Data was largely ignored during the session. PPI rose 0.3% on the month and

3.4% on an annual basis, both above consensus estimates. This was the 10th

consecutive reading in positive territory and reflected positive contribution

from energy and food, with downward pressure from utilities. The robust reading

kept JGB's subdued but saw little direct reaction. Markets look ahead to GDP

data on Wednesday.

- Yields rose across the curve, the 5-Year sector saw heavy selling ahead of the

5-Year auction tomorrow. 10-Year yield rose 0.8bp to 0.051%, some mild twist

steepening seen.