The long end of the JGB curve outperformed.....>

JGBS: The long end of the JGB curve outperformed in afternoon trade, resulting

in twist flattening of the curve after 20-Year supply saw the low price top

dealer exp., even as the cover ratio softened at the margin & the tail edged

ever so slightly wider. The mild concession ahead of supply, recent flattening

of the 20-/30-Year & 20-/40-Year spreads and short covering demand likely

combined to help the auction pass smoothly.

- Futures last -13 ticks as we move towards the close, fading after a modest

move higher in early Tokyo trade, before settling back around overnight session

levels.

- There was little else to discuss outside of limited headline flow surrounding

South Korean relations & trade war matters.

- Monthly trade data and 1-10 Year BoJ Rinban ops headline tomorrow's local

docket.