JGBs traded softer on Tuesday afternoon,.......>

JGBS: JGBs traded softer on Tuesday afternoon, with super-long yields finishing

slightly higher on the day, unwinding the early outperformance/twist flattening.

Futures trade was limited overnight.

- The Nikkei 225 pared all of its losses, as Chinese equities recovered.

- The latest 40-Year JGB auction saw the low price meet exp. (based on the BBG

dealer poll), with the cover ratio easing a tad, which surprised some as many

were looking for strong demand ahead of FY end.

- Worth highlighting that BBG sources suggested that Takeda will launch a Y500bn

hybrid issue in the new FY, on the back of the firm's purchase of Shire. This

would be the biggest ever round of single-tranche JPY corporate issuance, with

the firm looking to extend its debt maturity profile.

- The BoJ will conduct 5-10 Year Rinban operations today, and will announce its

plans for February Rinban ops on Thursday.