Japan follows US in holiday mood

Traders in Tokyo added that the year-end lull is already settling in the market. “Spreads will continue to move on big news,” said one trader, noting that many participants are closing their books and therefore are reluctant to take new positions. As a result, spreads will remain within a range through to the end of the year.

Participants are also “waiting to see what happens next week,” said another trader. The most important news participants will wait for in Japan is the government’s plans

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