JGBs traded softer on Tuesday, the 5-Year......>

JGBS: JGBs traded softer on Tuesday, the 5-Year sector experienced some modest

underperformance ahead of supply, with super-long paper experiencing a degree of

underperformance after the recent run of outperformance.

- The low price in the 5-Year JGB auction (101.02) met expectations, with the

cover ratio ticking higher. Little reaction was observed in either the cash

space, or in futures.

- Focus today will fall on the BOJ's Rinban operations covering the 1-10 Year

area of the curve.

- Futures continue to trade a touch softer, but have stuck to a tight range.

Bulls look to 151.02-19, where the 2018 & monthly highs are situated. Daily

studies looking to correct from modestly overbought levels and the lack of

topside follow through remain concerns for bulls. In saying that, bears still

need a close below 150.89 to signal a false break higher and return initial

focus to 150.71-80.