Futures Break Intermediate Resistance Levels Post-BoJ

The post-BoJ move higher in JGB futures extended through the European morning as participants digested the Bank’s lack of commitment re: NIRP exit steps/timing and suggestions from Governor Ueda re: the limited amount of data releases scheduled between now and the Bank’s January decision meaning that there are low odds of a hike being signalled come the end of the first ’24 gathering.

• A reminder that market inference of recent BoJ comments had resulted in widespread discussions re: potential timelines of an exit from NIRP, triggering the release of dovish newswire pre-meeting sources pieces.
• JGB futures last show +50 or so at 146.70, nearly 20 ticks shy of post-Tokyo bests.
• A meaningful break of today’s high would allow bulls to focus on key resistance in the form of the Mar 22 high (149.53), after intermediate resistance levels were breached during the earlier rally.
• 10-Year JGB yields closed just off lows of the day at 0.632%, registering the lowest close since August in the process.