The 10-Year JGB opened Asia Monday down a......>

JGBS: The 10-Year JGB opened Asia Monday down a tad at 150.28 from 150.32

closing on Friday's overnight session and last down further at 150.18, the JGB

10-Year saw a 13 tick sell off on the BOJ Tankan manufacturing data release

earlier on in the session which came in at +22 from +17 prior highlighting

manufacturers confidence and general positive demand. Sources said the decline

post data could be attributed to the coming of month end and therefore the

monetising of positions, it was half year end on Friday for Japan and therefore

the second half of the fiscal year and seasonal selling from banks. It looks as

though Tsy's are also unwinding on month end. 

- In other data, Japan Vehicle Sales came in at +0.4% from +4.7% prior.

- BOJ purchase operations were skipped today and all JGB yields are currently up

within a tight range, the 10-Year last up 1.3bp and the 40-Year last up 1.4bp

which is where they sat mid way through the session so little movement, volumes

are steady however despite most of the region being on holiday.