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Broader Global Core FI Bid Vs. Hawkish BoJ Speculation

JGBS

Tokyo returns from the NY break and will weigh up a rally in core global FI markets against speculation surrounding the potential for a hawkish tweak to the BoJ’s inflation projections and confirmation that the Japanese government will speak with the next BoJ Governor re: whether there is a need to rework the joint accord setting a 2% inflation target, as was previously speculated.

  • Elsewhere, the period between Christmas and NY saw suggestions that former BoJ Deputy Governor Yamaguchi, a vocal critic of BoJ Governor Kuroda’s ultra-loose policy settings, is gaining momentum when it comes to the race to succeed Kuroda. This could provide a hawkish twist/risk in that particular race and will be worth watching in the coming weeks/months.
  • A reminder that JGB futures softened in the final overnight session of ’22.
  • Final manufacturing PMI data presents the highlight of a limited local docket on Wednesday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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