US 10-Year yields rose to 2.93% at one point...>

JGBS: US 10-Year yields rose to 2.93% at one point during EU hours, but backed

off in US dealing to last sit at 2.890% as the pullback in US equities helped

garner a bid for Tsys. The latest US 2-Year auction was well absorbed, although

there was a notable dip in the cover ratio this time out when compared to the

prior auction, but it was more in keeping with the 6 auction average.

- Barclays believe that "today could see sellers take the upper hand around the

super-long end on concern about elevated levels ahead of Thursday's 20y auction

after USTs sold off overnight. The BoJ is scheduled to hold buying operations

for 1-5y and 5-10y issues." Focal points for traders will include a speech from

BoJ's Funo as well as the BoJ's Rinban operations in the 1-10 Year buckets.

- In other news Japan's JGB transactions totalled Y41.4tln in Jan vs. Dec's

Y41.8tln & FY17 monthly average of Y43.3tln, although Barclays note that

activity was brisk among some investors with dip buying apparent. Foreigners

logged a net sale of Y759bln, their largest sell size since November 2013, with

BoJ normalisation chatter and higher global yields the most likely catalysts for

the sales.