JGBs went in to the lunch break at 150.92......>

JGBS: JGBs went in to the lunch break at 150.92 (+7 ticks), as the cash curve

flattened, with swap spreads a little tighter across the curve.

- The Nikkei 225 stuck a tight range, around unchanged levels, while the USDJPY

hovered around 107.00, with little in terms of fresh trading impetus apparent.

- The BoJ's latest Rinban operations covered the 5-25+ Year buckets. The 5-10

bucket's offer to cover ratio fell from 4.11 to 2.85 which allowed the spread

the operations are conducted at to move into negative territory, a similar story

was apparent in the 10-25 Year bucket, which will please bond holders across the

two sectors after the jump in the offer to cover ratio seen at last week's

operations. The 25+ Year bucket's offer to cover ratio was steady but the spread

moved into negative territory.

- From a technical perspective futures' topside failures last week left the

contract looking heavy and focus back on 150.64-72 where 55 & 200-DMAs are

noted. Bears look for a close below the 200-DMA (150.63) to hint at a move back

to 2018 lows with below 150.55 to add weight to their case. The 150.99-151.06

resistance region is key this week.