-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free Access10-Year JGB Yield Hits Best Levels Since 2016 Ahead Of BoJ MonPol Meeting
The market keeps stress-testing the BoJ's YCC ahead of today's monetary policy meeting, with the yield on 10-Year JGBs running to 0.273% as cash trade re-opened, reaching the highest point since Jan 2016 and leaving the 0.250% cap further behind.
- The past week has witnessed an intensifying standoff between market participants betting on BoJ capitulation and the Bank itself, which has been stepping up bond purchases to enforce its yield target.
- Yesterday's surprise rate hike from the Swiss National Bank, their first one in 15 years, boosted bets that the BoJ could also pivot away from its super-dovish stance.
- But a BBG piece circulated this morning flagged the significant costs that the Bank would have to bear in losses on its massive JGB holdings if it were to give up on its yield control policy.
- This adds to the importance of today's policy announcement, with sell-side consensus looking for a stand-pat decision, although some see tweaks in messaging as an option.
- Market pricing of BoJ action based on meeting-dated OIS has displayed considerable volatility. When this is being typed, the implied odds of 10bp worth of tightening today are back to ~18% from today's high of ~60%, reached after a jump from yesterday's ~30%.
- Japan FinMin Suzuki has just said that he hopes the BoJ will continue efforts towards reaching its price goal, adding that Gov Kuroda has vowed to persistently continue his current policy. Suzuki reiterated concerns about yen weakening, but stressed that monetary policy is left to the BoJ, who can choose their policy methods.
- When this is being typed, cash JGB yields are mixed across the curve, with 10s underperforming and still subject to cheapening pressure. JGB futures are creeping higher and last trades at 147.28, 7 ticks above yesterday's settlement and close to session highs.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.