The curve sits a little steeper with...........>

JGBS: The curve sits a little steeper with 20+-Year paper underperforming,

though futures have struggled for fresh downside impetus & haven't really

threatened to break below the overnight session low during Tokyo trade, last

dealing 4 ticks below settlement. Short end of the curve relatively unmoved on

the back of a soft 2-Year auction, which saw the cover ratio soften & tail

widen, although this came on the back of the strong auction seen last month; the

low price marginally topped dealer exp as proxied by a BBG dealer poll.

- BoJ Deputy Governor Wakatabe noted that Bank's 10-Year JGB yield framework

doesn't need adjusting at present after the metric threatened to test the lower

end of the band last week. Wakatabe also noted that the BoJ may pre-emptively

adjust policy if the Board believes that it will be hard to achieve its 2%

inflation target. Wakatabe also stressed that the BoJ will not act simply

because the U.S. Fed does.

- The traditional month-end data dump comprising of the labour market report,

industrial production and Tokyo CPI will hit tomorrow. The BoJ will also conduct

5-25+ Year Rinban operations and issues its Rinban plan for July.