Overnight trade saw JGB futures recover from...>

JGBS: Overnight trade saw JGB futures recover from a modest dip on the back of

the announcement of the BoJ's Rinban plans' for June, which saw the Bank trim

the number of 10-25 Year buying operations to 3 (prev. 4) and 25+ Year buying

operations to 3 (prev. 4) N.B. the Bank also widened the band of its 10-25 year

purchases to Y100-300bn (prev. Y100-250bn).

- The move shows that the BoJ remains averse to any notable flattening of the

curve. Worth highlighting that 10-Year JGB yields were threatening to break

below -0.10% at the back end of last week, while 30-Year yields closed

comfortably below 0.5%. The 5-/30-Year yield spread sits at the flattest levels

seen since 2016.

- Early trade this week will see traders attempt to assess the impact of the

Rinban tweaks against the broader risk-off flows that have been evident in

financial markets early this week.

- 1-5 Year Rinban operations headline the local docket today, with Q1 CapEx &

company profits also due.