JGBs traded on the back foot in early..........>

JGBS: JGBs traded on the back foot in early afternoon dealing, with the Nikkei

225 moving to fresh session highs, and JGB futures breaching the overnight low.

This came on the back of the latest 5-Year auction, which saw the tail widen,

although the coverage ratio held steadyish (albeit at the lowest level since the

May 2017 5-Year auction), with the low price marginally softer than the BBG

dealer poll estimate. That was before the space saw a bounce later in the day,

with futures registering a fresh session high as a result, while there was

little in the way of catalysts apparent.

- The belly of the cash curve has underperformed for the majority of the

session, with the longer end fluctuating alongside futures.

- Focus turns to the BoJ Tankan survey & BoJ Rinban ops for 5-25+ Year paper due

Friday.