ASIA JGB's tumbled as the Nikkei rebounded sharply (+0.58%) after Citigroup said it has reached a deal to sell a USD 7.5bln stake to the Abu Dhabi Investment Authority (RTRS) At 0630 JGB's were trading 136.89 (+0.10). BoJ's Fukui said contact with banks is key factoring policy decisions and that money supply data was crucial for forestalling risks (RTRS) Japan's fiscal policy minister Ota said the end of deflation is in sight, prices in Japan will gradually rise and service prices will not rise easily (RTRS) Japan's finance minister Nukaga also said he is closely watching developments in the stock and foreign exchange markets. GLOBAL FIXED INCOME SPREADS: US 2s/10s (0630): 87.82 bps (95.50 bps at 2100); US 10s/30s (0630): 41.29 bps (45.65 bps at 2100); EU 2s/10s (0630): unchanged (40.90 bps at 2100); EU 10s/30s (0630): unchanged (41.80 bps at 2100) US/GE 10s (0630): Unchanged (19.86 bps at 1800) UK/GE 10s (0630): unchanged (52.00 bps at 2100) US Fed acts to calm jitters, ease pressure on banks as credit crisis deepens - Greg Ip (WSJ) Ip writing about the comments yesterday that the Fed would extend loans for longer-than-usual terms to dealers. Abu Dhabi is to bolster citigroup with USD 7.5bln capital infusion (WSJ) Citigroup is seeking to restore investor confidence amid massive losses due in credit markets. EUROPE ECB's Noyer said subprime losses are seen around USD 250bln, which is significant but bearable (RTRS)** Noyer urged all the central banks to ensure there is ample liquidity in financial markets to alleviate tensions. Trichet, speaking at the same event said the currency question will be discussed in Beijing. HSBC has stepped in to support its two structured investment vehicles, Cullinan and Asscher, with funding of up to USD 35bln to prevent forced sale of assets (RTRS)** FOREIGN EXCHANGE The RBNZ quarterly survey of expectations showed business managers forecast annual inflation to average 3% over the coming year up from the 2.7% forecast in the previous survey in August, backing views that interest rates will stay on hold in the coming months (RTRS) GEOPOLITICAL/GLOBAL EVENTS Bin Laden To Air A New Audio Tape To Europeans (Drudge Report) COMMODITIES US crude oil futures extended losses to hover just above $97 a barrel as traders used a slump on Wall Street and indications of an OPEC shift toward increasing production at next week's meeting as a reason to sell (RTRS) At 0630 crude was trading $97.19 down 51c. The Saudi oil minister said that prices are determined by the market and that he will look at demand, supply and inventories when OPEC meets on Dec. 5 (RTRS) Saudi did confirm that the kingdom had boosted production to 9mln bpd. Shell said that its Scotford refinery in Canada s still running at reduced rates. The company gave no date for a full restart of an upgrader. (RTRS) The above commentary was provided by Real-time Analysis & News (R.A.N) Ltd (known to traders as âRansquawkâ) operates from 0630GMT until 2200GMT to incorporate full coverage of the US bond and equity futures markets. Currently R.A.N covers Bond, STIR and Index futures in the US, UK and Eurozone as well as NYMEX crude and Gold. Furthermore, R.A.N has a stand alone Forex service (Ransquawk FX) which covers all the major currency pairs. Coverage is based around the economic calendar for that day but the product finds its value looking at flows, rumours and breaking news and delivers that information to the customer via an internet âsquawk-boxâ. For more information and a 1-week free trial please email us at info@ransquawk.com