Longer dated swaps and JGBs continued their....>

JGBS: Longer dated swaps and JGBs continued their relative outperformance on the

back of a solid 30-Year auction, which saw a higher low price vs. exp and a

tight tail, although the bid to cover ratio eased back (but it still remains

elevated). This has allowed the curve to extend on the early flattening that was

observed and more than correct the modest steepening/concession experienced on

Monday.

- Futures registered a fresh high on the back of the auction, and ground higher

through the remainder of the session.

- Barclays provided the highlight of the corporate issuance docket with Samurai

lines announced.

- Focus now returns to BOJ Rinban ops for the remainder of the week.