JGBs are expected to maintain a strong momentum, after lead futures hit an all-time high and cash bond yields fell to multi-year lows in the previous session; "today's market could be stormy at high price levels," says SMBC Nikko Securities chief strategist Hidenori Suezawa. In addition to expectations for additional monetary easing by the BOJ, he says maturities of JGBs in December, roll-over of lead futures contract next week and the need for duration extension at the beginning of the month fuel JGB rallies. Lead December futures are tipped in a 145.00-145.25 band vs 145.22 at Thursday's close, while the benchmark 10-year cash JGB yield is expected in a 0.680%-0.700% range vs 0.690%.
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