Risk-on sentiment & potential fiscal matters...>

JGBS: Risk-on sentiment & potential fiscal matters outlined in an earlier bullet

weighed on the broader JGB space in morning trade.

- Taking a closer look, BoJ Rinban ops covering 1-5 & 10-25+ Year BoJ's

seemingly provided some support to the wings of the curve, as the 5-10 Year

sector outperformed. 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 today's Rinban results, all purchase sizes were left unchanged. The

offer to cover ratios moderated across the 1-3, 3-5 & 25+ Year buckets but moved

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.

pervious ops)..

- Futures finished morning trade just off worst levels, -21 ticks vs,

settlement.