JGB's rose on Wednesday, supported initially...>

JGBS: JGB's rose on Wednesday, supported initially by reports of the latest

North Korea missile launch the bid was cemented after strong results in the BoJ

purchase operations and some month end extension buying. After market BoJ's

Nakaso said that the reversal rate is useful tool, echoing Kuroda, and that

monetary easing had side effects - some positive some negative.

- JGB Opening Call Barclays: "Given the sharp bear-steepening in US and European

bond markets overnight, today could see a switch to the sell side in JGBs,

especially in the superlong end, despite some support from the big month-end

extension. We expect the 2y auction (JN383) to produce somewhat lackluster

results assuming yields near current levels (WI close on 29 November: -0.165%).

Those levels are lower than the average at the last auction (-0.143%) and

uncertainty around the BoJ's buying operation plans for December, to be released

in the evening, could create a further headwind. We expect the BoJ to keep its

buying ranges unchanged from November. However, we do believe the target for the

T-bill balance will be reduced from the lower-JPY20trn range given that the

balance of purchases appears likely to be less than JPY20trn at end-November."