JGB's slipping in early trade, pressured by....>

JGBS: JGB's slipping in early trade, pressured by a slew of economic data early

in the session. Japanese household spending and retail sales for December

released Tuesday indicate solid consumption in preliminary October-December GDP

data due out on Feb. 14. Real average household spending posted the first

year-on-year drop in two months in December, down 0.1%, after rising 1.7% in

November and being unchanged in October, data from the Ministry of Internal

Affairs and Communications showed. But a ministry official noted the three-month

moving average of retail sales in the October-December quarter rose 0.6% for the

third straight year-on-year rise after rising 0.4% in September-November.

- Short end is seeing a concession ahead of the 2-Year auction today, heavy

selling in cash.

- JGB outlook Barclays: "Today could see sellers take a slight upper hand,

especially in short/medium-term sectors, prior to the 2y auction after US and

European bonds sold off overnight. We expect the 2y auction (JN385) to clear

smoothly assuming yields near current levels (WI close on 29 January: -0.125%)."