### The latest flow data from the Ministry.....>

JGBS: ### The latest flow data from the Ministry of Finance (MOF) shows that

T-Bill ownership by the BoJ has fallen to 31.2% to hit the lowest since 2014,

while overseas ownership has stayed broadly the same at 53%. The aggregate

effect of this is a reduction in the combined share of T-Bills by the BoJ and

foreigners to 85%.

- The Tokyo repo fixing has seen month-end volatility recently, with the effect

exacerbated at quarter end. MNI sources note this is due to some creative window

dressing at the end of the periods as banks, especially regional banks which

have come under scrutiny from the FSA with regard to the quality of their

holdings.

>> POV: Therefore the improvement in supply/demand conditions could mean a

smoother transition at month/quarter conclusion at the end of September.

- The repo rate is currently -0.073% and has moved in a 0.052ppt range since the

end of June. At month/quarter-end in June the rate dropped to -0.306%, and hit

-0.665% at month/quarter-end in March.