BoJ Matters Eyed

Core FI has traded on a firmer footing ahead of the Tokyo re-open, although liquidity is diminished owing to the U.S. holiday that will be observed on Monday.

• As a reminder, JGB futures went out at best levels of the session during last week's final round of overnight trade, 3 ticks above Tokyo settlement.
• A quick note that weekend press saw JiJi report that the BoJ will consider a proposal to allow wider fluctuations around its 10-Year JGB yield target (which is set to stay at around 0%), in what appeared to be a source report that had no attribution. There didn't appear to be a reference re: the timing of such an announcement, with the BoJ set to convene and issue its first monetary policy decision of '21 later this week, while it is set to release a review of its monetary policy practices in March.
• There is little of note on the local docket today, with final industrial production data providing the highlight.