Futures Richer & At Session Highs At Lunch

At the Tokyo lunch break, JGB futures are richer and at session highs, +27 compared to the settlement levels.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined BoJ Opinion Summary for the December MPM.
• Cash US tsys are dealing 1-2bps richer across the major benchmarks in muted Asia-Pac dealing.
• Cash JGBs are richer across benchmarks beyond the 1-year zone (+2.3bps), with yields -0.6bp (3-year) to -2.2bps (5-year). The benchmark 10-year yield is 2.0bps lower at 0.615% versus the recent low of 0.555% (20 Dec).
• Swaps are richer across maturities, with rates 1.4bp to 2.5bps lower. Swap spreads are tighter.
• Today, the local calendar also sees November Housing Starts. Further out this week sees November Retail Sales and Industrial Production (flash reading).