The 10-Year JGB is currently trading flat,.....>

JGBS: The 10-Year JGB is currently trading flat, in Asia yesterday JGB's

initially caught a bid then U.S Pres. Trump announced a travel ban on N. Korea

and the JGB 10-Year began to decline... Opening in Europe it was 10 ticks down

from levels seen during Asia catching a slight bid again alongside US Tsys which

ended Monday around price highs on safe-haven buying as N. Korea foreign

minister said it could fire even if the U.S were not in local airspace as

comments from Trump suggesting the U.S would take out N. Korean leadership were

considered by N. Korea as 'an act of war.'

- Japanese President Abe on Monday said he would 'dissolve parliament's lower

house on Thursday for a snap election' (CNBC)

- JGB yields are up across the curve, the longer end seeing more activity as we

await the 40-Year Bond auction later on in the session. The 10-Year JGB yield is

currently up 0.2bp. Barclays said - 'Today could see buyers take a slight upper

hand, even before the 40y auction, amid risk-off flows after US and European

bonds were purchased overnight. We expect the 40y auction (JL10) to produce

decent results assuming yields near current levels.