JGB futures spiked lower at the re-open,.......>

JGBS: JGB futures spiked lower at the re-open, perhaps on Nikkei/RTRS source

reports pointing to no overall change in the domestic govt's econ assessment

ahead of the release of its report tomorrow (albeit with a hat tip to heightened

risk). The dip was quickly bought, as reports doesn't represent much in the way

of new news, given the recent raft of gov't communique i.e. too early to

determine impact of Coronavirus, watching closely etc.

- Contract finished -6, 22 ticks off lows, long end underperformed in cash

trade, ahead of tomorrow's 20-Year supply.

- Swaps were generally tighter across the curve.

- Local core machine orders data was weak, while the monthly trade balance data

revealed a slightly narrower than expected deficit, as exports didn't fall by as

much as exp., while imports were softer vs. exp.

- Final machine tool orders and the aforementioned 20-Year supply headline

tomorrow's local docket.