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Futures Continue To Correct Lower

JGBS

The early impetus in futures is to the downside, JBH4 last at 146.47, -.28. We are closing the gap with pre BoJ levels (back near 146.00).

  • National CPI for Nov printed in line with market expectations and continued to show easing y/y momentum. The core measure, excluding all food and energy was steady though at 2.7% y/y. Parts of the services sector saw rising y/y momentum, although less so in m/m terms.
  • Also note the MUFG CEO stated that the BoJ could end its negative rate policy in January per an interview with Asahi (see this BBG link).
  • Oct BoJ policy minute headlines are also crossing at the moment, but are quite dated relative to the most recent BoJ outcome earlier this week.

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