JPY is weak from Friday’s close and extending the retracement of its haven-driven rally from early October.
Key Quotes:
“The market tone appears to be improving and short-term yield spreads have climbed to fresh highs.”
“The 2Y U.S.-Japan spread has extended beyond 300bpts to reach levels last seen in late 2007 and risk reversals are showing a clear moderation in the premium for protection against JPY strength vs. both the USD and EUR.”
“There are no major domestic risk events or releases this week.”
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