JGB's went into the lunch break higher, but....>

JGBS: JGB's went into the lunch break higher, but off high levels of the

session, futures up 6 ticks at 150.40. 

- MNI sources note that a theme this week has been foreigners selling JGB's and

hedging in swaps. This trend looks to be reversing slightly today after dovish

comments from BoJ Governor Kuroda at Davos and a slight miss in Japanese CPI,

evidenced by a tightening in LCH/JSCC spreads in the long end.

- Domestic accounts have been buyers of JGB's, though with yields still hovering

below touted dip buying thresholds this trend could abate if there is a renewed

sell off, putting pressure on the BoJ if 10-Year yield breaches the 0.10% level.

10-Year yield last down 0.2bp at 0.083%.