There was little notable reaction to the.......>

JGBS: There was little notable reaction to the latest 10-Year JGB auction on

Tuesday, which was buffeted by 10-Year yields moving back into positive

territory during the morning session, allowing the average yield of the auction

to register at 0.015%. The tail on the auction narrowed vs. the previous 10-Year

supply, with the cover ratio ticking higher. Also worth highlighting that the

low price of the auction topped the exp. in the BBG poll, albeit at the margin.

- The auction allowed some modest bear flattening to take place in the afternoon

session, after 10- & 20-Year paper had modestly underperformed in the morning.

This pushed 10-Year yields back into negative territory briefly, before they

moved higher again, closing at 0.012%.

- Swaps were tighter vs. JGBs across the curve.

- The BoJ will conduct 5-10 Year Rinban ops today, with 30-Year JGB supply due

Thursday.