The JGB 10-Year declined throughout............>

JGBS: The JGB 10-Year declined throughout yesterday's Asia-Pac session to end

the day at lows last seen mid-August, the 10-Year moved a total of 36 ticks

throughout the session, the decline began when BOJ purchases were announced with

heavy offers.. cover for the 3 to 5-Years was 4.09x, 10 to 25-Years was 3.71x

and 25+-Years was 3.88x, all up from prior. The decline continued despite brave

comments from President Trump saying the U.S is 'totally prepared' for second

option of military action on N. Korea but stated this would be 'devastating.'

JGB's continued to decline coming into the overnight session alongside US Tsy's

on selloff of tax reform and rate lock hedges but stabilised around 150,

currently sitting at 150.44.

- Yields are all up, more given on the longer end again at +3.3pts for the

40-Year and +1.8pts on the 10-Year, 2-Year fairing worse at +0.6bp ahead of the

2-Year bond auction today, bond and stock flow is in soon and also coming up is

a 3-Month bill auction and coal import data so we'll look to those.