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Futures Richer & At Session Highs, Retail Sales & IP Data Tomorrow

JGBS

JGB futures are richer and at session highs, +28 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. November Housing Starts are due later today.
  • Cash US tsys are dealing 1-2bps richer across the major benchmarks in muted Asia-Pac dealing.
  • Cash JGBs are richer across benchmarks, with yields -0.3bp (1-year) to -2.7bps (7-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 1.5bp to 2.9bps lower. Swap spreads are tighter.
  • Tomorrow, the local calendar sees November Retail Sales, Industrial Production (flash reading) and Weekly International Investment Flows.

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