The super-long end of the curve benefitted.....>

JGBS: The super-long end of the curve benefitted from the BOJ leaving the size

of its Rinban operations unch. on Thursday (after the tweaks it made to its

longer dated purchases last Friday), which has allowed the curve to flatten. The

offer to cover of the operations can be found below:

- 1-3 Year 2.71 (prev. 2.69), 3-5 Year 2.41 (prev. 2.43), 10-25 Year 2.67 (prev.

3.16), 25+ Year 3.41 (prev. 4.40).

- Futures stuck to a narrow range after moving higher with Tsys & drawing

support from super-long paper after the contract failed to break below 150.00 on

Weds. Resistance isn't noted until the down trendline (~150.32).

- The move higher came in spite of reports made late Wednesday noting that the

GPIF will adjust its JGB purchase plan, allowing for more flexibility in JGB

allocation during 2019 (reverting after that).

- Elsewhere, participants highlighted the ~30bp widening in USD/JPY 3-Month

basis, which now covers year-end, a period typically associated with USD demand.

- Focus turns to the BOJ's Oct JGB purchase plan & summary of opinions from its

latest MonPol decision later today, as well as a 2-Year JGB auction.