Back Sub 145.00, Onshore Markets Closed Today, Political Turmoil Continues For Kishida

USD/JPY got close to 146.00 post the NFP headlines before retracing sharply to sub 144.00 in NY Friday trade. We track near 144.60 in early Monday dealings, with yen having lost 2.5% last week, to be the worst G10 performer.

• Despite volatility through the payrolls print, US yields finished last week comfortably higher. The US-JP 10yr government yield spread is back above +340bps, still maintaining its uptrend from late 2023.
• Locally, BBG noted late last week that sell-side analysts see January as a less likely pivot point for a BOJ shift in the wake of the earthquake at the start of the year and recent comments from Governor Ueda.
• Onshore markets are closed today, returning tomorrow when Tokyo CPI will be out.
• Local politics is also likely to be in focus. A ruling party lawmaker was arrested yesterday as part of an on-going funding scandal, which is threatening PM Kishida's leadership (see this BBG link).
• In the option expiry space, note the following for NY cut today: Y144.46-55($560mln).