10yr JGB Yield Dips Sub 50-day EMA Before Recovering, Futures Off Highs

JGB futures sit off session highs. We were last 145.38, +.76. Earlier highs were at 145.55, which was just shy of mid October highs at 145.63.

• There doesn't appear any macro link to the pause in the uptrend, while US Tsy futures are just off session highs (last 108-28+). Earlier we had positive momentum buoyed by the Q3 miss amid weaker domestic demand.
• These moves have seen JGB yields pare losses. The 10yr yield sits back at 0.79%, up from lows near 0.77% earlier. The is close to the simple 50-day EMA, which we have been below since early July this year. We are still 5-8bps lower in yield terms across the 4-40yr tenors.
• It has been a similar story in the swap space, albeit with lower outright moves. The 10yr swap last near 0.96%.
• On the data front tomorrow, Oct trade figures, core machine orders are due, while weekly investment figures are also out.
• On the supply side, 1yr notes will be sold.