JGBs are likely to open higher, maintaining last week's strength; but "with the 10-year yield nearing 0.720%, players seem to be strongly cautious" about further yield declines says Tokai Tokyo Securities chief JGB strategist Kazuhiko Sano. He doesn't expect any significant impact from July-September GDP data, due at 2350 GMT, on the JGB market, as weak results have already been priced in; Japan's economy is expected to have shrunk an annualized 3.9% in July-September, the sharpest drop since January-March 2011. Lead December JGB futures are tipped in a 144.51-144.65 band vs 144.56 at Friday's, while the benchmark 10-year cash JGB yield is expected to trade in a 0.725%-0.735% vs 0.730%.
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