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A very limited session for JGB futures.........>

JGBS
JGBS: A very limited session for JGB futures overnight, with the contract
consolidating ahead of today's BOJ MonPol decision.
- there is little scope for the BOJ to adjust MonPol, with all of those surveyed
looking for the BOJ to leave its MonPol settings unch. Focus will move to the
rhetoric employed in the statement & BoJ Governor Gov. Kuroda's press
conference.
- Dovish turns from global central banks have forced super-long JGB yields to
lowest levels seen since '16, in spite of some tweaks to the BoJ's Rinban ops.
- Baseline: BOJ leaves MonPol settings unch. & downgrades view on exports &
industrial prod. owing to the global trade backdrop, reflected in recent
Japanese data releases. Kuroda reiterates that the BOJ will employ additional
easing if the gradual momentum towards the Bank's inflation goal fades (4
potential measures 1. Lower rates 2. Lower 10-Year JGB yield target 3. Increase
size of asset purchases 4. Increase rate of expansion of the monetary base.)
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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