Free Trial

BofA Like 5-/10-Year Swap Steepener

JGBS

Bank of America write “even if it lets the long-end sector trade freely in the future, we think the BoJ would still want to keep the yields low at the short and intermediate sector of the curve. The intermediate sector is important as it reflects the market's expectations for a monetary policy cycle. The BoJ conducted a 5-Year funds-supplying operation on January 23, which appears to reflect its interest in this sector. There may even be a scenario where the BoJ leaves the basic framework of YCC, but moves the target sector from 10-Year to 5-Year.”

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

To read the full story

Close

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.