The JGB curve bear steepened on Monday on......>

JGBS: The JGB curve bear steepened on Monday on the back of an uptick in risk

sentiment.

- Traders were wary after Friday's surprise tweak to the BoJ's 5-10 Year Rinban

operations, but the Bank opted to stand pat this time out, and leave the size of

its operations covering the 1-5 & 10-25+ Year sectors unchanged. The most

notable takeaways from the breakdown of the operations showed that the 10-25

Year bucket's offer to cover ratio nearly doubled to levels more in line with

the other buckets, while the 1-3 Year bucket's offer to cover ratio ticked above

5, which kept a lid on the space in afternoon dealing, while adding pressure to

the shorter end of the curve.

- Focus today will fall on 10-Year JGB supply.

- Barclays suggest that "today could see sellers initially take the upper hand,

led by the long end, on the back of risk-on flows and a pre-10y auction

concession."