JGB futures have picked up a bid,......>

BOND SUMMARY: JGB futures have picked up a bid, likely on the back of reports on

Japanese gov't's debt issuance plans for next year. Various media outlets cited

sources in Tokyo as saying that new JGB supply will be trimmed in FY20/21, while

40-Year issuance will be increased. Elsewhere, Japanese trade deficit shrank in

November, but a softer than expected imports side may have lent additional

support to the space. JGB futures last trade at 152.24, +12 ticks vs. settlement

(off earlier highs). The yield curve has twist steepened as the super-long end

underperforms on the back of aforementioned chatter re: upped 40-Year supply. 

- Little to write home re: broader picture themes. T-Notes +0-01+ at 128-16;

cash yields slightly higher across the curve. Eurodollars up to -0.5 thru reds.

- Turning to Australia, both YM & XM trade -2.5 ticks. Cash yields sit 2.1-2.6bp

higher across the curve. Bills last seen 1-3 ticks lower through the reds. The

local skilled vacancies data revealed the 11th consecutive M/M drop ahead of

tomorrow's labour market report.