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

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

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

higher, but stuck to a tight range. Yields across the curve finished lower, with

the super-long end more reluctant to go bid. 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. JGB futures eased overnight.

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

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

Wednesday'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 unchanged after Wednesday's move lower.

- Japan CPI & an enhanced liquidity auction for 5-15.5 Year JGBs headline today.