A limited session for JGB futures, initially...>

JGBS: A limited session for JGB futures, initially easing back from overnight

levels to finish the morning session virtually unchanged vs. settlement, with a

positive A.M. session for the Nikkei 225 noted. The space then ticked higher in

the afternoon session, as futures breached their intraday highs. This came as

JGBs followed the broader major fixed income space higher, after U.S. President

Trump stated that "if we can't make a deal with Congress (re: the border wall),

we'll probably declare a national emergency."

- This allowed the flattening theme to persist through the afternoon.

- Japanese highlights next week include core machine orders & PPI due Wednesday,

as well as national CPI & industrial output due Friday. BoJ's Kuroda & Amamiya

are set to speak Thursday, while usual BoJ Rinban ops will also be of interest.

5-Year supply is also due, as well as a liquidity enhancement auction for old

5-15.5-Year JGBs.