Futures Fall Back To 100-Day EMA, 3 Month Bill Auction Coming Up

JGB futures have maintained an offered tone in the first part of Friday trade. At the break we sit at 145.68, -.38. Session lows rest at 145.66. This is line with a weaker TY impulse, although we are yet to break down through Thursday lows (last 108-17, -09).

• Focus will be on whether we can test earlier lows this week, around the 145.60 level. Note as well current levels are right on the 100-day EMA. The 20-day and 50-day EMAs sit further south, around the 145.17-20 region.
• Core yield/futures moves have had more influence on JGBs that local data outcomes today. Earlier we had weaker CPI data, although the core prints still picked up in m/m terms for Oct.
• Preliminary PMI figures showed a loss of momentum for Manufacturing in November, with the index moving further into contraction territory (48.1 from 48.7 prior).
• In the cash JGB space, yields have continued to tick higher. The 10yr benchmark now above 0.76%, nearly 4bps higher. The 20yr is back to 1.495%, while other parts of the curve have seen slightly more modest yield gains. In the swap space the 10yr is +5bps to 0.98%.
• Still to come is the 3 month bill sale and liquidity enhancement auction.