The Japanese curve twist steepened as a........>

JGBS: The Japanese curve twist steepened as a strong 2-Year JGB auction helped

yields move lower, with the super-long end unwinding the bulk of the softness

seen in the morning session.

- The aforementioned strong 2-year JGB 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 supply,

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 30- & 40-Year.

- The US Tsy curve steepened on Tuesday with the 10-Year yield briefly topping

3.00%. Focus will be on the shape of the JGB curve.