Wednesday saw the JGB curve twist flatten in...>

JGBS: Wednesday saw the JGB curve twist flatten in tenors out to 20-Years, with

risk off flows supporting the space, although the shorter end of the curve came

under some pressure in the afternoon as the offer to cover ratio in the 1-3 Year

bucket of the BoJ's Rinban operation ticked higher.

- Longer dated paper was resilient in front of today's 20-Year supply.

- US Tsy yields declined on Wednesday.

- Focus today will be on the aforementioned 20-Year JGB supply.

- Barclays believe that "today could see risk-off flows give buyers a slight

upper hand, led by the long end, despite the pending 20y JGB auction. We expect

the auction (JL164) to clear without a hitch assuming yields near current levels

(WI close on 14 March: 0.545%). Although valuations appear somewhat rich, we

expect carry demand from a broad range of investors into the year-end driven by

expectations for prolonged yield curve control by the BoJ."