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

JGBS: The super-long end of the JGB curve underperformed on Friday, as the

advances in US-North Korean dialogue & the weaker yen weighed on longer dated

paper.

- The BoJ's latest MonPol decision was a non-event.

- The US curve bear-steepened on Friday in lieu of the strong headline NFP print

in the latest labour market report.

- Barclays suggest that "with the selloff in US Tsys over the weekend, today

could see risk-on sentiment cap the JGB market's upside, but we expect

relatively firm trade overall on favourable supply and demand. The BoJ is

scheduled to hold buying operations for 5-10y and 10y+ issues. We expect the

sizes to be unchanged, but do see a risk of a reduction given the swing toward a

weaker yen. Other highlights this week include the 5y JGB auction, 20y JGB

auction and the JTUC's first estimates of the "shunto" spring wage negotiation

results."