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

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.