The JGB curve bear-flattened on Tuesday, as....>

JGBS: The JGB curve bear-flattened on Tuesday, as sellers took the upper hand

against a backdrop of improving risk sentiment heading in to 40-Year JGB supply.

- The auction passed without a hitch, despite some worry heading in, which saw

demand creep back into the  super-long end. 

- US Tsys moved higher in Tuesday's NY session as 10-Year paper outperformed,

alongside a sell off in US equities & with USDJPY moving back below 105.50.

- Barclays suggest that "with USTs rising sharply overnight, today could see

buyers take a slight upper hand around the long end of the JGB market amid

risk-off flows, but we expect thin trade and limited upside into the month-end.

The BoJ will hold buying operations for 10y+ issues and likely for sub-1y

issues, in our view."