JGBS: MOF Headlines On Issuance Consistent With Reuters Sources

The trend condition in S&P E-Minis remains bullish and the contract traded higher Monday, as it started the week on a bullish note. The fresh cycle high confirms a resumption of the primary uptrend and maintains the bullish price sequence of higher highs and higher lows. The 6900.00 handle has been cleared, opening 6953.25 next, a Fibonacci projection. Initial firm support to watch lies at 6748.48, the 20-day EMA. The trend structure in Eurostoxx 50 futures is bullish. Monday’s fresh cycle high reinforces a bull theme and maintains the rising price sequence of higher highs and higher lows. Note too that moving average studies are in a bull-mode position, highlighting a dominant medium-term uptrend. Sights are on 5727.18, a Fibonacci projection. First support lies at 5625.31, the 20-day EMA. 

• Japan's NIKKEI closed lower by 293.14 pts or -0.58% at 50219.18 and the TOPIX ended 39.18 pts lower or -1.18% at 3285.87.
• Elsewhere, in China the SHANGHAI closed lower by 8.721 pts or -0.22% at 3988.224 and the HANG SENG ended 87.56 pts lower or -0.33% at 26346.14.
• Across Europe, Germany's DAX trades lower by 74.47 pts or -0.31% at 24233.55, FTSE 100 higher by 5.5 pts or +0.06% at 9659.08, CAC 40 down 18 pts or -0.22% at 8221.18 and Euro Stoxx 50 down 15.51 pts or -0.27% at 5695.55.
• Dow Jones mini up 8 pts or +0.02% at 47720, S&P 500 mini down 0.5 pts or -0.01% at 6907.75, NASDAQ mini up 9.75 pts or +0.04% at 25973.25.

OAT/Bund Block trade, this looks properly weighted:

• RXZ5 ~2.11k bought at 122.67.
• OATZ5 ~2ksold at 129.67.

• MNI: ECB SEP CONSUMER 1-YR INFLA EXPECTATION 2.7%
• MNI: ECB SEP CONSUMER 3-YR INFLA EXPECTATION 2.5%