A tight overnight session for futures after....>

JGBS: A tight overnight session for futures after the uptick in Tokyo hours,

with the contract finishing unch. Twist steepening gave way to bear steepening

in the cash space ahead of the Tokyo close, with the super-long end

underperforming ahead of today's 20-Year supply. A couple of BoJ sources pieces

did the rounds after hours, with the WSJ noting that "some BoJ policy makers see

little merit in an interest-rate cut this month, believing the ammunition should

be saved for worse economic conditions." Elsewhere, BBG sources pointed to a

(small) downgrade of the Bank's CPI & GDP projections, which shouldn't really

come as a surprise given the global economic backdrop.

- Elsewhere, late Wednesday saw strong dep't store sales data, although the

prints covered Sep, and therefore represent a high degree of front-loading ahead

of the now implemented sales tax hike. This at odds with some other data.

- Sumitomo Life noted that it remains -ve re: investing in super long-term JGBs

as it believes that those yields will likely stay at low levels, although it

will consider increasing investment in longer-end JGBs when yields rise.

- 20-Year supply and flash PMIs headline the local docket today.