JGB futures are sharply and near session highs, +59 compared to the settlement levels on Friday, after yesterday’s public holiday.

• There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined labour market, retail sales and IP data.
• (Bloomberg Opinion, John Authers) Authorities won’t confirm intervening on behalf of the yen because they know what really matters is being decided by the Fed. (See link)
• Cash US tsys are ~1bp richer across benchmarks, continuing the rally since Thursday’s Q1 PCE Deflator-induced low. The FOMC Policy Decision is scheduled for Wednesday, with policymakers expected to reiterate their commitment to maintaining higher interest rates for an extended period.
• Cash JGBs are richer across the curve, with yields 0.3-3bps lower. The benchmark 10-year yield is 2.2bps lower at 0.869% versus the YTD high of 0.930%.
• The swaps curve has bull-flattened, with rates 1-2bps lower. Swap spreads are wider out to the 10-year and tighter beyond.
• Tomorrow, the local calendar will see Jibun Bank PMI Mfg (F) data ahead of BoJ Minutes of March Meeting.