The long end of the JGB curve continued to.....>

JGBS: The long end of the JGB curve continued to add pressure to the space on

Tuesday as markets returned from the long holiday weekend. Participants appeared

sensitive to the BOJ's Friday adjustment to its 25+ Year Rinban operations, with

Wednesday's 40-Year JGB supply promoting additional concession. 40-Year JGB

yields rose by 2.7bp (according to TradeWeb).

- The BOJ left the size of its Rinban operations unchanged Tuesday, with the

offer to cover ratios available below:

- 5-10 Year: 1.96 (prev. 2.50)

- JGBis: 5.89 (prev. 5.02)

- JGB futures flirted with Friday's session low (150.00), but failed to generate

a sustained break below the figure. Any such break would open up a move to the

August 03 low (149.95), with bears looking to the recent cycle low (149.75).

- BOJ Governor Kuroda offered little fresh insight into the Japanese

economy/monetary policy in a speech he made late in the day.

- As mentioned, 40-Year JGB supply dominates the domestic docket today, and

could have implications for the global bond space.