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 was used to respond

to the sharp rise in yields after Friday's BOJ source report re: policy

adjustment, however, no offers were tendered. The yield offered was some way off

market, and points to continued support from the BOJ, for now.

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

10-Year JGB yields last trade around ~2.0bp off the lows, although the bid has

faded in afternoon dealing.

- 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).