Futures Strengthen After BoJ Opinion Summary For Dec MPM

In Tokyo morning trade, JGB futures have turned the overnight uptick into a decent gain, +21 compared to settlement levels, after the release of the BoJ Opinion Summary for the December MPM. Bloomberg reported that:

• ONE BoJ member: NEED TO CONTINUE WITH EASING PATIENTLY.
• ONE BoJ member: NOT ENOUGH CERTAINTY FOR HITTING PRICE GOAL.
• ONE BoJ member: MUST HAVE PRICE GOAL IN SIGHT FOR END OF NEG. RATE.
• ONE BoJ member: NOT TOO LATE TO DECIDE ON RATE AFTER SPRING WAGES.
• ONE BoJ member: NO NEED TO RUSH TO RAISE INTEREST RATE.
• ONE BoJ member: CAN AFFORD TO CAREFULLY ASSESS VIRTUOUS CYCLE.
• Cash JGBs are mostly richer across benchmarks, with yields +0.9bp (1-year) to -2.0bps (futures-linked 7-year). The benchmark 10-year yield is 1.4bps lower at 0.621% versus the recent low of 0.555% (20 Dec).
• Swaps are richer across maturities, with rates 1.1bp to 2.3bps 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).