BNP Paribas note that "the JGB market has......>

JGBS: BNP Paribas note that "the JGB market has spent the first half of the

August cooling off from two weeks of sharp volatility before and after the Bank

of Japan's July monetary policy meeting (BoJ MPM). During this time, JGB 10s20s

marginally steepened from 50bp but this steepening has paused. Going forward, we

think there is potential for a replay of events around the September 2016 MPM

when, like now, BoJ rhetoric was not consistent with the actual policy change

and, as a result, the market's reaction was delayed. We therefore think a

further 10s20s steepening may take a few weeks to a couple of months. In the

meantime, we recommend adding to steepening positions on any flattening of the

curve."