JGB futures briefly ticked lower in the wake...>

JGBS: JGB futures briefly ticked lower in the wake of the latest round of

20-Year supply, which saw an uptick in the cover ratio, steady price tail &

marginal narrowing of the yield tail as the low-price matched exp. per the BBG

dealer poll. Contract -3 ticks last.

- 30- & 40- Year paper has outperformed, resulting in some twist flattening of

the curve.

- Local PMI data was disappointing. The manufacturing survey hit its fastest

rate of contraction since June 2016, while the composite survey experienced its

first contractionary print since September 2016.

- There was a meeting between PM & South Korean PM Lee, with both leaders

agreeing that the bilateral relations between the two nations must improve.

- Elsewhere, the BoJ maintained its assessment of the Japanese financial system,

noting that it is maintaining stability on the whole, while noting that banks'

credit costs have remained low, but are starting to rise.

- Little in the way of notable reaction in 20-Year yields post-supply.

- Little of note on the Japanese docket tomorrow.