The JGB curve twisted yesterday with the.......>

JGBS: The JGB curve twisted yesterday with the 5-10 Year sector outperforming

despite an uptick in the offer to cover ratio in the latest BoJ Rinban operation

covering that region of the curve.

- Super-long paper fell afoul of the increase in sellers at the operation, with

further pressure generated by a rally in the Nikkei 225.

- Domestic focus today will fall on the 2-Year auction.

- Barclays suggest that with "US and European bond markets largely unchanged

overnight, today could see the JGB market in a range overall ahead of Fed Chair

Powell's testimony to Congress and Wednesday's announcement of the BoJ's JGB

buying operation plans for March. We expect the 2y auction (JN386) to clear

smoothly assuming yields near current levels (WI close on 26 February: -0.145%).

However, those yields are lower than the average at the last auction (-0.130%)

and relative valuations are not particularly cheap, suggesting it may be

difficult to expect much more than foreign investor demand for USD ASW."