The widely touted trimming of the purchase.....>

JGBS: The widely touted trimming of the purchase size of the BoJ's 5-10 Year

Rinban operations came to fruition and provided some light pressure for JGBs,

with futures going out 9 ticks lower on the day after a brief look below the

overnight low.

- The breakdown of the operations revealed slightly higher offer to cover ratios

for the 1-3 & 5-10 Year buckets vs. previous ops, with the yield spread ticking

up for the 5-10 Year purchases.

- The curve has unwound the earlier steepening, with super-long yields little

changed and the 7-10 Year sector underperforming.

- Focus now falls on the BoJ's September Rinban plan, scheduled for release

after hours today.