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Early Strength Not Sustained

JPY

Early yen strength has been unwound as we approach the Tokyo fix. From lows of 142.86, we sit back at 143.25/30 now little changed versus end NY levels from Wednesday. Highs from yesterday's session come in around the 143.70/75 region.

  • Local markets have returned with a subdued start for JGBs. The US-JP10yr bond yield differential sits down slightly off recent highs, last near +328bps. Local equities remain the red.
  • The final Dec PMI manufacturing PMI read was nudged up to 47.9 from the initial estimate of 47.7.

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