BNP Paribas note that the "Bank of Japan...>

BOJ VIEW: BNP Paribas note that the "Bank of Japan has announced it will reduce

the number of operations in the 1y5y and 5y-10y sectors from six to five in

September, and hike the upper end of its guidance range for offers. Monthly

purchases in the 3y-5y and 5y-10y sectors will fall slightly if offer amounts

are equal to guidance range midpoints, but this is unlikely to generate much

upward pressure on the 10y yield, in our view. We expect the lower frequency of

operations to continue in order to make the BoJ's yield curve control as

sustainable as possible. The BoJ may also decide to stop giving prior notice of

its schedule for JGB-buying operations within the next few months, in order to

conduct rinban offer in flexible manner."