The space has operated in a confined range,....>

JGBS: The space has operated in a confined range, with futures finishing the

morning session 3 ticks lower at 150.78.

- The cash curve sits a little flatter, with super-long paper outperforming.

- Swaps are running a little wider against JGBs.

- BoJ Gov Kuroda has noted that the risk to inflation is to the downside

- Japanese lifers bought a net Y1.05tln worth of foreign bonds during April,

according to data released by the MoF. This represents the largest amount of

foreign bond purchases in any April since 2008.

- BoP data revealed that Japanese funds were sellers of US debt in March, to the

tune of Y433.8bln, recording a 6th straight month of net selling, as they

continued to rotate into European paper.

- Participants await the results of the latest 10-Year JGBi auction.

- Future's hesitation ahead of the 150.95-151.06 resistance region is less than

ideal for bulls with a close above the March 12 high (151.06) needed to shift

initial focus higher. Bears now need a close below the May 02 low (150.77) to

target the 200-DMA (150.69).