The BoJ lowered the purchase size of its....>

US TSYS: The BoJ lowered the purchase size of its 5-10 Year JGB purchases in its

latest round of Rinban operations, which was a widely touted move, but

nonetheless applied some light pressure to Tsys, although move has faded, with

the contract sticking to a tight range. T-Notes +0-01+ at 131-21+. Yields sit

unchanged to 1.2bp higher across the curve. Light selling of TYV9 132.50 calls &

TYV9 130.25 puts provided the only notable points of flow.

- Some desks have pointed to month-end rotation out of bonds and into stocks

and/or or rate locking ahead of the expected upscaling in corporate supply

during September as potential drivers for price action today.

- Elsewhere, arrests of 3 prominent protestors in Hong Kong has garnered

attention, although 1 weekend protest has been cancelled.

- Eurodollar futures trade 0.25-1.0 tick higher through the reds.

- PCE data & the Chicago PMI headline the local docket on Friday. It is also

worth reminding that the latest round of tariffs in the Sino-U.S. trade war are

set to go into play on Sunday. Monday is the Labour Day holiday in the U.S.