OIL: WTI Bounces on Key Technical, Set for Strongest Week Since June

At the Tokyo lunch break, JGB futures are stronger, +8 compared to settlement levels, after yesterday's holiday.

• Japan's preliminary S&P PMIs for September were below the August outcomes. Manufacturing printed at 48.4, versus 49.7 in August. The services print was 53.0, against a 53.1 prior. The composite fell to 51.1 versus 52.0 in August.
• The manufacturing print is back to lows from March of this year. We did get close to 47.0 for the index in Q1 of 2024. The detail showed output down to 47.3 from 49.8 in August. New orders were also down in the month. The US manufacturing PMI fell for Sep as well, although it remains at much higher outright levels (52.0).
• On the services side for Japan, we remain at elevated levels. There remains a decent wedge between the manufacturing and services PMIs.
• Cash US tsys are little changed in today's Asia-Pac session.
• Cash JGBs are slightly mixed across benchmarks, with yields 1.3bp lower (20-year) to 0.3bp higher (40-year). The benchmark 10-year yield is 0.9bp lower at 1.645% versus the cycle high of 1.670%.
• Swap rates are flat to 2bps lower.

• China's major bond futures are moving in mixed trade this morning as the 10-Yr bond yield is stationary at 1.80%.
• The 10-Yr is  lower by -0.03 at 107.72 and moves further below all major moving averages.
• The 2-Yr is flat at 102.35 and consolidates below all major moving averages.  Above is the 20-day EMA of 102.38.