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A Touch Weaker After BoJ Tweaks

JGBS

JGB futures a touch lower post-BoJ, with some limited chop for futures after the decision proved to be in line with the well-documented Nikkei story that was run on Thursday (colour on the decision in previous bullet). JGB futures last -19, with the underperformance in the 7- to 10-Year sector of the curve deepening after the widening of the BoJ's permitted 10-Year JGB yield trading band. Cash JGBs now sit cheaper across the curve, more than unwinding the modest bid that was seen in the morning. The BoJ stressed that it will be able to enforce the upper limit of it's new trading band, while stressing that it can do more re: easing if required.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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