The ‘will they or won’t they?’ December Bank of Japan rate hike question continues to dominate Japanese financial markets. Mix in a little bit of fiscal sustainability concern to make it more interesting too.

On that fiscal sustainability question you’d never know it given the very, very successful 30-year JGB auction yesterday:

Of course, much of the success is down to investors wanting to lock in the highest rate they’ve seen in years. Still, they are obviously not worried about the ability of the Japanese government to pay out on the bonds for the next 3 decades!

On the data agenda today, the household spending result will giver further information on the prospect of a BoJ December (19) rate hike. Solid data will favour a hike and vice versa.