Off Session Highs, YCC Tweak Seen Easing Transition From Easy Policy Settings - BOJ

JGB futures sit off session highs in recent dealings, we were last at 144.81, +0.14. An early spike to 144.89 saw no follow through. This was a touch above Wednesday session highs, and in line with highs form Oct 25. US futures sit just below Wednesday session highs as well, last 108-13.

• Yield losses continue in the cash JGB space. The 10yr is back to 0.84% (-2bps), but slightly up from session lows (0.833%). The 20-40 part of the curve has seen slightly larger losses in yield terms, -2-3bps, with the 20-yr back to 1.56%. The 7yr is now at 0.60%, off 2.5bps.
• The 10yr swap rate was last near 1.01%, close to session lows.
• The data on weekly investment flows, and trade/current account figures as well as bank lending hasn't impacted sentiment.
• The BoJ summary of opinions from the October policy meeting had a wide variety of viewpoints. One member noting the likelihood of achieving the inflation target sustainably has risen since July. While another noted the central bank was still some distance from the 2% target.
• The YCC tweak was seen as aiding the exit from easing policy settings. There is also a chance next year's wage rise could exceed this year's one, according to another member (RTRS).
• Still to come is the 30yr debt sale and Ueda before parliament.