The JGB curve is running flatter heading.......>

JGBS: The JGB curve is running flatter heading into the close, following the

flattening that was seen on the Tsy curve Monday that has spilled over into

Tuesday trade. Futures have run higher in recent trade, sitting at best levels,

immediate resistance noted at the Sep 08 2017 high of 151.51.

- Little in the way of reaction in JGB futures and benchmark 10-Year JGB yields

in the wake of the latest 10-Year JGB auction. The tail was marginally wider

than the most recent auction, with the low price slightly softer than the dealer

poll estimate collated by BBG. The cover ratio eased.

- As a reminder, 10-Year benchmark JGB yields sit at the lowest level observed

since late July/early August, when the BoJ tweaked its YCC settings, at 0.069%,

consolidating below the heavily watched 0.1% in recent sessions. The low

outright yield likely dissuaded participation in the auction.

- A lower Nikkei 225 (last -2.3%) has supported the space.

- BoJ Dep. Gov. Wakatabe is due to speak Wednesday, with focus also set to fall

on Rinban ops due later this week.