Modest risk-off flows pushed the Nikkei 225....>

JGBS: Modest risk-off flows pushed the Nikkei 225 away from the early highs,

with the benchmark trading 0.2% lower, supporting JGBs. JGB futures have edged

higher throughout the day, but have stuck to a tight range. Yields across the

curve are now lower, with the super-long end more reluctant to go bid for the

most part.

- Comments from BoJ's Amamiya revealed little new, with a focus on demographics,

while BoJ Gov. Kuroda also offered little fresh insight in his own address.

- The BoJ left the size of its 5-10 Year Rinban ops unchanged today, offer to

cover ratio 2.21 (prev. 3.28), providing further support to 5-Year paper after

yesterday's strong auction,. . MNI understands that the BoJ will likely consider

reducing the frequency of its purchases of JGBs with a remaining life of 5-10

years to 4 times monthly from the current 5 as early as from next month. If the

BoJ reduced the frequency of JGB bond buying with a remaining life of 5-10 years

to 4 times monthly, the scale of its purchase per operation is expected to be

increased to around Y500bn from the recent Y430bn.

- 3-Month Euro Yen TIBOR fixed unchanged today after yesterday's move lower.