The JGB curve reversed course on Thursday,.....>

JGBS: The JGB curve reversed course on Thursday, recording a session of

bear-steepening after 2 sessions of notable flattening. This was facilitated by

a recovery in broader risk sentiment, as equities ticked higher.

- The latest 2-Year JGB auction cleared smoothly, which supported shorter dated

paper, while month-end extensions perhaps limited the downside across the curve.

- The BoJ has kept its purchasing ranges unchanged from May, in line with

broader expectations.

- The BoJ will conduct Rinban operations covering the 5-10 Year bucket today.

- Barclays suggest that "today could see buyers take a slight upper hand on the

back of risk-off flows, led by the super-long end, where supply and demand is

expected to be solid in the first half of the month."