JGB Market Compass

10-year JGB yield seen resisting further downward pressure from 10-year UST yield

• Amid growing expectations of decline in 10-year UST yield, some see 10-year JGB yield following it lower

• But we think worries about higher JGB yields (due to speculation of early end to NIRP) will leave 10-year JGB yield more resistant to such downward pressure

• For now, attention likely to focus on reaction of 10-year JGB yield if US payrolls report (Dec 8) sends 10-year UST yield lower