The JGB curve bull-flattened on Wednesday,.....>

JGBS: The JGB curve bull-flattened on Wednesday, with super-long paper

outperforming ahead of today's 30-Year JGB supply, and as the offer to cover

ratio ticked up in the shorter dated buckets covered by the BoJ's latest round

of Rinban operations.

- The softer Nikkei also helped put a bottom into the space.

- Focus today will fall on a speech from BoJ Gov Kuroda & the aforementioned

30-Year JGB supply, as well as the broader risk sentiment re: Syria & the

US-China trade war.

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

after US Tsy yields fell overnight. We expect the 30-Year auction to clear

smoothly. Although valuations do not look cheap in terms of either yield level

or the curve, supply and demand appears likely to remain favourable on

expectations for prolonged easing by the BoJ and deteriorating returns on

FX-hedged foreign bonds."