JGB's rose sharply yesterday with the strong...>

JGBS: JGB's rose sharply yesterday with the strong 5-15 Year enhanced liquidity

auction spurring the existing bid and pushing futures to just below the 151.00

handle. The medium term sector saw strong bids with the CTD 10-Year future

seeing yields drop around 1.6bp at the close, yields dropped to multi-month lows

across the curve with the curve steepening on the heavy buuying in the belly. 

- Japanese CPI data has come and gone with little fanfare, the headline CPI and

core CPI for the national readings both in line with expectations and the

previous.

- JGB Opening Call Barclays: "Today could see the market change course with

sellers taking a slight upper hand around the superlong end after USTs turned

down overnight, while the medium-term sector and area around futures holds firm

with the favourable market tone. The BoJ is scheduled to hold a buying operation

for 5-10y issues today and may also have one for -1y issues. We believe today's

offer in the 5 10y sector is likely to be unchanged and see the next reduction

coming at yields near 0bp."