JGB's were lower on Monday, with no BoJ........>

JGBS: JGB's were lower on Monday, with no BoJ Rinban ops apparent until later in

the week, as USDJPY & the Nikkei 225 ticked higher.

- US Tsys bear flattened on Monday, running into a heavy week of short/medium

term US Tsy supply, with the broader risk on backdrop also helping Tsys lower.

- US 2-Year supply wasn't particularly reassuring, as the auction provided a

small tail & dealer take up edged higher. 

- Focus today will fall on 40-Year JGB supply with a lack of economic data

apparent during Asia-Pacific hours.

- Barclays suggest that "today could see sellers initially take a slight upper

hand, led by the long-term sector, on improvements in risk sentiment and

correction pressures into the 40y JGB auction (JU10) after USTs sold off

overnight. We expect lacklustre results at the auction assuming yields around

current levels (26 March WI close: 0.885%), given that demand for super-long

bonds into the fiscal year-end has already taken a breather and that valuations

appear rich."