Futures Sharply Higher Overnight Despite Subdued US Tsys, PPI Due

In post-Tokyo trade, JGB futures are sharply richer, closing +30 compared to settlement levels, despite a lacklustre performance overnight from US tsys ahead of tonight’s US CPI data.

• FOMC, ECB and BOE policy meetings are also scheduled for later this week before the BOJ next Tuesday.
• Bloomberg has reported that Jefferies believes that the Bank of Japan will wait until the first quarter to end its negative interest-rate policy as it works to manage volatility in the 10-year bond while letting domestic banks adjust to a future jump in yields (See link).
• Approval ratings for PM Kishida continue to fall, hitting a new low of 23% according to a NHK poll. (see BBG link)
• Locally on the data front today we have the November PPI due. The market expects a 0.2% m/m reading (prior -0.4%), while for y/y the print is expected at 0.1% (prior 0.8%).