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

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

was buffeted by 10-Year yields moving back into positive territory this morning,

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, with benchmark 10-Year

paper last yielding -0.002%, while futures operate at the lower end of today's

range as the Nikkei 225 adds 1.00%, exerting some modest pressure on the space.

- Swaps are tighter vs. JGBs across the curve.

- The BoJ will conduct 5-10 Year Rinban operations tomorrow, with 30-Year JGB

supply due Thursday.