The Japanese curve has bull steepened as a.....>

JGBS: The Japanese curve has bull steepened as a strong 2-Year JGB auction

helped yields to move lower, with the super-long end unwinding the softness seen

in the morning session.

- JGB futures last trade at 150.69 (+6 ticks)

- The aforementioned strong 2-year JGB auction auction provided a tight tail,

with strong bid to cover ratio and a slightly higher than expected low price.

That came after 2-Year paper didn't show any signs of concession ahead of

today's JGB auction, although the sector didn't look particularly rich in

outright terms and many were expecting decent enough demand.

- Swaps underperformed JGBs in all tenors barring the 40-Year.