Eyes On BoJ Summary Of Dec Meeting, May See Early Pressure

JGB futures recovered from lows in the post-Tokyo session to finish +6, after initially showing below their Tokyo base.

• There may be some pressure on feedthrough from Tuesday’s weakness in core global FI markets during the early rounds of Tokyo trade, although 10-Year JGB yields sit ~2.5bp shy of the BoJ YCC cap, which may limit that move.
• The summary of opinions covering the BoJ’s December meeting provides the headline domestic risk event of the session. This comes after Governor Kuroda’s continued protests which have suggested that the surprise tweak to YCC did not represent a tightening step, but was supposed to promote the functioning of the Bank’s YCC framework on the whole.
• Elsewhere, we will get preliminary industrial production figures.