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JGB futures had a brief look below their.......>

JGBS
JGBS: JGB futures had a brief look below their weekly low in the wake of a
softer than prior liquidity enhancement auction for off the run 5-15.5 Year
JGBs, before recovering from worst levels. Futures last -26. Early long end
outperformance gave way in the cash space, with bear steepening coming through.
- Local CPI data saw a modest uptick in the core & core-core measures. Flash PMI
saw the composite reading print at 49.9 vs. a prior 49.1, aided by a
stabilisation in the m'fing reading & an uptick in the services print. Monthly
dep't store sales got more attention than usual, as it was the 1st major retail
figure released in the wake of sales tax hike. Nationwide Oct Dep't Store Sales
YoY -17.5 Y/Y after Sep front loading saw a 23.1% rise.
- Elsewhere, LDP Sec-Gen Seko noted that "Japan's government should not hesitate
to issue more bonds to fund a stimulus package for the economy" as he pointed to
a Y10tn supplemnetary budget (a figure that has been widely touted previously).
- Retail sales, the labour mkt report & Tokyo CPI headline next week's local
docket. The usual BoJ Rinban ops will also be seen, while BoJ's Sakurai will
speak. Next week will also see the MoF come to market with 40-Year supply.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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