The JGB 10-Year opened Tokyo at 150.38 and.....>

JGBS: The JGB 10-Year opened Tokyo at 150.38 and immediately dipped to 150.33.

The 10-Year moved lower on the overnight, moving alongside Tsy's after talk of

John Taylor or Kevin Warsh being top contenders for President Trumps Fed Chair.

- Barclays Opening Call: Today could see the market come under some adjustment

pressure around the superlong end prior to the 20y auction given the overnight

selloff in USTs, but should draw buybacks around those sectors assuming firm

auction results. We expect the 20y auction (JL162) to clear smoothly with yields

near current levels (WI close on 16 October: 0.59%). Current yields are higher

than the average at the previous auction (0.56%), suggesting the issue is likely

to attract firm demand from a wide range of investors, as it did last time. The

easing of concerns around political risk ahead of the lower house election on 22

October and the light auction schedule in the second half of the month should

also spur investor demand.

- Yields are up across the curve, ahead of the 20-Year auction the 20-Year yield

is flat as well as the 10-Year, more give on the longer end, the 40-Year up

0.5bp.