Risk-on sentiment & fiscal spending rumours....>

JGBS: Risk-on sentiment & fiscal spending rumours weighed on the broader JGB

space in morning trade, with the space continuing to falter as we moved through

the Tokyo afternoon; futures sit just off worst levels, -40 ticks on the day.

- BoJ Rinban ops covering 1-5 & 10-25+ Year JGB purchases seemingly provided

some relative support to the wings of the curve during the morning, as the 5-10

Year sector underperformed. There may have also been a degree of auction set up

in play here, with 10-Year supply due tomorrow, and some nerves jangling as

traders look back to a couple of choppy trading sessions in the wake of the 2

most recent JGB 10-Year auctions. Looking at the details of today's Rinban

results, all purchase sizes were left unch., offer to cover ratios moderated

across the 1-3 & 25+ Year buckets, was virtually steady in the 3-5 Year bucket &

moved notably higher in the 10-25 Year ops. The spreads that the ops were

conducted at widened across the 1-3, 3-5 & 10-25 Year ops, but narrowed in the

25+ Year ops (vs. previous ops). Local data saw Q3 CapEx beat, corporate profits

miss & a virtually in line with flash final m'fing PMI reading.

- The aforementioned 10-Year JGB supply headlines tomorrow's local docket.