JGB's rose yesterday, rising from the open.....>

JGBS: JGB's rose yesterday, rising from the open alongside a bid in UST's and

Aussie bonds. Softer than expected GDP data underpinned the bid in JGB markets

as did the smooth takedown of the BoJ purchase operations in 1-10 year sector.

Yields fell and the curve bull flattened. JGB's slightly higher in early Asia

trade, futures last at 150.87.

- UST's rose overnight and the curve flattened despite robust CPI and retail

sales data. Stocks fell and USD/JPY fell as the yen strengthened.

JGB Opening Call Barclays: "In a continuation of yesterday's trend, today could

see buyers initially take a slight upper hand around the superlong end on the

back of risk-off flows after USTs extended their gains overnight, led by the

long end. We expect the 20y auction (JL162) to produce somewhat strong results

even near current yield levels (WI close on 15 November: 0.575%). Although

recent yields are lower than the average at the last auction (0.591%), we

believe a certain amount of demand can be expected for the carry-rich 20y bonds

on expectations for the current YCC policy to remain intact for longer."