Yen Underperforms Major Peers, Offshore Yuan Depreciates

The yen keeps its position as the worst G10 performer after underperforming last Friday, as the BoJ kept its ultra-loose monetary policy settings unchanged, while announcing a surprise tweak to its bond-purchase plan after hours. Japan's central bank increased the frequency of Rinban operations for November, effectively stepping up the enforcement of the YCC framework.

• USD/JPY risk reversals soared towards the back end of last week, led by the short end of the curve, consolidating at elevated levels this morning. The spot rate last deals +60 pips at Y148.20.
• The BBDXY index has edged higher as U.S. Tsy curve has bear flattened in early trade, with FOMC monetary policy decision eyed this Wednesday.
• The Antipodeans trade on a slightly firmer footing as Australian September retail sales marginally topped expectations.
• Offshore yuan has depreciated as we approach the PBOC fix. Central bank chief Yi pledged to maintain "normal" monetary policy and keep the yuan stable for "as long as possible."
• China's official PMI readings will be published at the bottom of the hour, providing the highlight of the Asia-Pac session. Later in the day, focus will turn to EZ GDP & CPI data, German retail sales & U.S. MNI Chicago PMI. ECB's Visco & Lane are set to speak.