The longer dated area of the JGB curve has.....>

JGBS: The longer dated area of the JGB curve has softened ahead of today's

20-Year supply. Daiwa believe that "the 20-Year sector lacks attraction relative

to the yield curve or swaps but there doesn't seem to be any bias in positions

and there is a possibility that investors may be attracted to the new issue, or

at least more so than they would be to a re-opened one."

- This of course comes after 20-Year yields hit 18-month lows last week.

- Daily studies looking to correct from modestly overbought levels in futures

and the lack of topside follow through remain concerns for bulls. In saying

that, bears still need a close below 150.89 to ease bullish pressure and return

initial focus to 150.71-80.