JGBs stuck to a relatively tight range and.....>

JGBS: JGBs stuck to a relatively tight range and last trade 5 ticks softer at

150.94.

- Cash JGB's are mainly lower, fiscal year flow has been somewhat muted,

although month-end extension projections match the above average extension seen

last March.

- Japanese 2-Year & 40-Year supply will provide the focal points for the space

this week.

- Trading conditions were generally quiet, ahead of a holiday shortened week for

the western world. The Nikkei 225 reversed its early losses to trade higher,

with USDJPY ticking higher, as AUDJPY pushed JPY crosses upwards.

- For JGB futures, the recovery from the 200-DMA tests that defined last week

was gaining traction above the 21-DMA (150.93) with bulls now focused on a test

of 151.13-19 where the Bollinger top, 2018 high and Nov monthly high are

located. Bears now need a close below 150.94 to gain breathing room and below

150.73 to shift immediate focus back to the 200-DMA (150.62).