Free Trial

Looking Through CPI

JGBS

A narrow morning session for JGB futures leaves the contract +1 at the lunchbreak. The space has looked through the softest domestic headline CPI reading in a little over 10-Years, with the dynamic providing no real shock vs. market and BoJ expectations. Cash JGBs were biased a touch lower in the main, with 40s ever so slightly cheaper on the day.

  • The government's latest economic update was in line with recent source reports, so provided no shocks, with a marginal uptick in the GDP exp. for the incoming FY.
  • Focus now moves to the final BoJ decision of 2020. The Bank will likely leave its headline monetary policy settings unchanged, with focus set to fall on the potential extension of its corporate liquidity provisions beyond the current Match '21 sunset (see our full BoJ preview for further details).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.