JGBs struggled in the morning session after....>

JGBS: JGBs struggled in the morning session after the BoJ cut the size of its

purchases across the 5-25+ Year JGB zone in an effort to steepen the yield

curve, although futures quickly regained some poise, even as the yield curve

held steeper.

- The contract then managed to move higher in early afternoon trade, last -3

ticks after briefly moving into positive territory on the back of a moderation

in the offer to cover ratios in the Rinban, which were perhaps a result of exp.

of BoJ easing next month. Also worth highlighting that average yields were

notably wider in today's ops. Offer to cover ratios were as follows: 5-10 Year

1.74x (prev. 1.89x), 10-25 Year 1.55x (prev. 3.03x), 25+-Year 3.11x (prev.

4.31x).

- Elsewhere, Japan registered the slowest annual rise in headline CPI since July

2017 at +0.3% Y/Y, a day after the BoJ noted that it is paying "closer

attention" to the risk of losing momentum towards its 2.0% inflation goal.

- Flash PMIs, the usual Rinban ops, 40-Year supply and an address from BoJ

Governor Kuroda headline next week's docket.