JGB's finished lower on Friday and continued...>

JGBS: JGB's finished lower on Friday and continued to drift lower during the

overnight session. JGB futures opened Tokyo at 150.72, some 12 ticks lower.

- The curve twist flattened to finish the week on Friday, the long end seeing

some support on expectations of reduced super long issuance in 2018 fiscal year.

- Early data has been largely ignored, with JGB futures last at 150.72. Japanese

PPI rose 0.3% on the month in October, above the 0.1% estimate. The annual print

also beat estimates at 3.4%.

- 5-Year sector seeing heavy selling in a pre-auction set up, yields up 1.9bp in

the sector, curve seeing some flattening early on, 2/30-Year spread 1.1bp

tighter.

- JGB Opening Call Barclays: "Today could see a selling bias around the

short/medium-term sectors ahead of Tuesday's 5y auction after US and European

bonds sold off sharply at the end of last week. The BoJ is not scheduled to hold

any buying operations. This week's highlights include Tuesday's 5y auction and

Thursday's 20y auction."