Futures Hold Losses At The Break, 3 month Supply Soon

JGB futures have maintained familiar ranges post the early dip. We sit at 146.48, -.27 at the break. Pre break highs were at 146.56, against earlier lows 146.42.

• The bias in US Tsy futures has been to the downside as the session has progress, although we aren't yet sub Thursday lows.
• Fresh macro drivers for JGBs have been absent post the earlier CPI data and onshore bank warning around a potential BOJ shift in January.
• Cash JGB yields sit 4bps higher in the 10yr space, last at 0.623%. We have seen larger yield gains in the 20-40yr tenor. 10yr swap rates sit at 0.83%.
• Still to come is 3 month supply, and the enhanced liquidity auction.