The BOJ maintained the size of its 1-5 Year....>

JGBS: The BOJ maintained the size of its 1-5 Year Rinban operations but offered

to buy an unlimited amount of 10-Year JGBs via a fixed rate operation at 0.11%.

This was the first fixed rate operation since February and is probably being

used to stabilise the market after Friday's BOJ source report re: policy

adjustment.

- The announcement of the fixed rate operation put a bid into the space, and

10-Year JGB yields last trade around 1.0bp from session highs, at 0.75bp, after

hitting a low of 0.65bp.

- During the lunch break we learnt that no bids were tendered at the fixed rate

operation. Looking at the breakdown of the BOJ's Rinban operations, the 1-3 Year

bucket's offer to cover ratio eased to 4.41 from 5.36, while the 3-5 Year

bucket's offer to cover ratio held relatively steady at 3.44.

- JGB futures' range have been contained by resistance at the 200-DMA (Y150.74)

& support at the high from Feb 01 (150.36).