US TSYS: Treasuries Recover Some Ground, BoJ Decision To Come

TYH4 is trading at 111-14+, -01+ from NY closing levels.

• Markets started the new week with a slight risk on tone in equities with S&P eminis making new contract highs (ESH4 4898.25), before giving some of those gains back to close at 4881.00, while FI markets recovered slightly from last week's pushback from the Fed regarding projected rate cut pricing through mid-2024.
• The Bank of Japan kicks off the latest central Bank policy announcement cycle sometime after 1130 local time, BoJ Ueda presser follows appr 4 hours later.
• Moderate volumes, TYH4 over 1.2M as the contract see-sawed in the upper half of the session range, trading 111-13.5 (+9.5) after the bell -- well inside technicals: with resistance at 111-26/112-26+ (20-day EMA / High Jan 12) vs. support at 110-26 (Low Jan 19).
• Lone data point out last night: Conference Board leading economic index fell by less than expected in December, down -0.1% M/M (cons -0.3) after -0.5%. It marks the first beat since the August report and is only the third beat for the past year, whilst it’s also the smallest decline since a flat print in Mar 2022.
• Quiet in terms of data tonight with Richmond Fed Manufacturing index , and Tsy 2Y note sales the only things to note.