JGB futures pulled back from their overnight...>

JGBS: JGB futures pulled back from their overnight highs, but finished off of

their Tokyo trough, -4 ticks, with yields mixed across the curve. Some slight

outperformance crept into the longer end in the afternoon, with swaps finishing

wider across the curve.

- Flash PMI data had helped the space move lower in early Tokyo trade, with

moves in the right direction across the releases (although manufacturing PMI

remains in contractionary territory).

- This came after the latest round of inflation data saw CPI tick higher,

virtually in line with exp.

- Elsewhere, the minutes from the BoJ's Dec meeting were released, but provided

no real impetus, as they are somewhat stale (as ever), given that we have

already seen another BoJ decision in the time since.

- The 1-5 Year JGB liquidity enhancement auction saw wider spreads vs. the prev.

auction, but a higher cover ratio.

- The local docket is empty on Monday.