The longer end of the JGB curve experienced....>

JGBS: The longer end of the JGB curve experienced some concession ahead of

today's 20-Year supply, with the line looking a little expensive vs. its longer

dated counterparts, however, some expected shorted covering requirements and an

attractive carry and roll to add some support to the supply.

- Looking at the auction results in detail, the cover ratio edged higher when

compared with the previous auction, as the carry and roll proposition seemed to

tempt dealers despite the relative value issues vs. longer dated paper.

Elsewhere the yield tail halved in width.

- There was no notable reaction straight after the auction, outside of a modest

tick higher in benchmark 20-Year yields (likely representing appetite for the

new line offered in the wake of the solid auction vs. the benchmark #JB165).

- The cash curve holds steeper in early afternoon dealing.

- JGB futures have stuck to a tight range thus far.