Thursday saw 10-Year JGB futures edge higher...>

JGBS: Thursday saw 10-Year JGB futures edge higher in the aftermath of the BOJ

trimming its Rinban operations in both the 10-25 & 25+ Year buckets by Y10bn a

piece, with a lack of selling impetus noted across the curve as some expected

such a move (if anything super-long yields edged a touch lower, before 40-Year

yields edged higher late in the session). Looking at the breakdown of the

operations, the offer-to-cover ratio of the 5-10 Year sector moderated to 2.39

from 3.67, while the 10-25 Year bucket's offer-to-cover ratio ticked lower, and

the the 25+ Year bucket's offer-to-cover ratio held steady

- JGB futures tracked U.S. Tsys higher in the overnight session.

- Japanese CPI data is due today, with participants also looking to the enhanced

liquidity enhancement auction for JGBs with 1 - 5 years until maturity.

- Bulls have so far failed to take out the 151.02 resistance in futures, which

is needed to add support to the case for a test of the 151.13-19 resistance

region. Daily studies correcting from modestly overbought levels weighed in past

weeks.