JGB's went into the close mostly higher,.......>

JGBS: JGB's went into the close mostly higher, futures are up 11 ticks but

yields are mixed across the curve. JGB's were intially bid at the open, sources

note some Japanese players reacting to dovish comments from BoJ Gov Kuroda post

presser yesterday, after hitting early highs of 150.78 futures sold back down

slightly, before grinding higher into the lunch.

- The MOF sold 5-15.5 Year JGB's in an enhanced liquidity auction, the sale was

taken down smoothly, cover was slightly weaker but spreads dropped deeper into

negative territory, the average spread at -0.017% the lowest since 7 November in

an enhanced liquidity auction.

- Demand was supported by the MOF announcement that they would cut bond issuance

for the 4th consecutive year, the MOF reduced issuance in all sectors apart from

the 20-Year given strong investor demand in the maturity. Expected bond issuance

in the next fiscal year will be Y149.9tln, the lowest since 2008.

- Yields mixed across the curve in thin trade in cash bonds, 10-Year yield down

1bp at 0.051%, coming off the highest level in 7 weeks.