The JGB curve ran flatter Tuesday, following...>

JGBS: The JGB curve ran flatter Tuesday, following the flattening that was seen

on the Tsy curve Monday that spilled over into Tuesday trade. Futures registered

a contract high that was extended on in the overnight session as U.S. stocks

cratered and Tsys remained bid.

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

in the wake of yesterday's 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.

- 10-Year benchmark JGB yields hit the lowest level observed since late

July/early August, when the BoJ tweaked its YCC settings, consolidating below

the heavily watched 0.1% in recent sessions. The low outright yield likely

dissuaded participation in the auction.

- A lower Nikkei 225 also supported the space.

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

5-25+ Year Rinban ops