Futures Finished Up From Lows, 40yr Supply Auction Tomorrow

Post the Tokyo close on Friday JGB futures climbed modestly. We end at 145.73, +.07. Earlier lows were at 145.57. This was a touch below earlier lows from the beginning of last week. Last week's highs were at 146.43.

• Futures took their cue from offshore developments, particularly in the EU, when onshore markets returned on Friday. Still, it is noteworthy that US Tsy futures ended last week around session lows, so we saw some modest outperformance from JGBs on a relative basis.
• In terms of cash JGBs, the benchmark 10yr finished up just under 0.78%, the 20-yr near 1.50%. The 10yr swap rate is close to 0.99%.
• Coming up on the data front we have the Oct Services PPI. 2.1% yr is projected against the prior 2.1% outcome. This follows Friday's slightly weaker than expected CPI outcome, although as we noted the core prints were firmer in m/m terms.
• Note we have 40-yr supply tomorrow, while BoJ speak also crosses on Wednesday and Thursday this week.