The JGB curve sits a touch steeper last,.......>

JGBS: The JGB curve sits a touch steeper last, with participants focusing on

tomorrow's announcement of the BOJ's Rinban plan for September. It is worth

remembering that 10-Year JGB yields still operate at a mere ~0.11bp, with some

speculating that the BOJ could adjust its longer dated operations next month,

although this is by no means a consensus view.

- Short end JGBs briefly unwound the bulk of their losses on the back of a

relatively strong 2-Year JGB auction as the cover ratio ticked higher and

average yield equated to the high yield. The low price was also a touch higher

than dealers' median exp.

- Futures also traded back from worst levels as the Nikkei 225 moved back to

unchanged, before the aforementioned tick higher in long end yields resulted in

a new intraday low for JGB futures.

- The curve is modestly steeper last.