Trial now
EURIBOR

EURIBOR FIX

FRANCE T-BILL AUCTION PREVIEW

E5.3-6.5bln of BTFs on offer next week

GILTS

2s/10s now flattest since 12/05

SHORT-STERLING OPTIONS

Call spread buyer

--Also Leaves Unchanged Buying Plans for Each JGB Maturity Zone
     TOKYO (MNI) - The Bank of Japan said Monday it has decided to leave the
frequency of its Japanese government bond purchases in August unchanged from
July, indicating there is no need to guide any particular bond yields higher or
lower.
     The BOJ also left unchanged its purchase plans for each JGB maturity zone.
     The market focus was on whether the BOJ would change the per-auction size
for JGBs with a remaining life of 5 to 10 year from a range of Y350 billion to
Y550 billion planned for July.
     On July 24, the bank reduced its buying of the zone to Y470 billion from
Y500 billion in the previous similar operation on July 18 as the 10-year JGB
yield remained stable.
     Earlier on July 7, it increased the scale of its purchases of JGBs with a
remaining life of 5 to 10 years to Y500 billion from Y450 billion in a similar
operation on July 5 in order to stop JGB yields from rising fast. It also
conducted a fixed-rate bond buying operation for the first time since Feb. 3.
     At the time, the 10-year bond yield rose to 0.105% for the highest level
since Feb. 3.
     Under its yield curve control policy framework, the BOJ is seeking to
stabilize the 10-year government bond yield, the benchmark for long-term
borrowing costs, "around zero percent" and keep the overnight interest rate at
-0.1%.
     The BOJ also said Monday that it may announce additional JGB buying
operations, depending on market conditions.
     The BOJ refrains from conducting JGB buying operations on days when the
Ministry of Finance auctions JGBs and the BOJ board holds policy meetings.
     The planned JGB purchase operations in August:
     The zones (amounts to be purchased in ranges)
     1 to 3 years (Y200-Y300 bln in Aug vs. Y200-Y300 bln in July)
     3 to 5 years (Y250-Y350 bln in Aug vs. Y250-Y350 bln in July)
     5 to 10 years (Y350-Y550 bln in Aug vs. Y350-Y550 bln in July)
     10 to 25 years (Y150-Y250 bln in Aug vs. Y150-250 bln in July)
     More than 25 years (Y50-Y150 bln in July vs. Y50-Y150 bln in June)
     The frequencies of operations in each zone in August (vs. plans and actuals
in July)
     1 to 3 years: 6 times (6 times)
     3 to 5 years: 6 times (6 times)
     5 to 10 years: 6 times (6 times)
     10 to 25 years: 5 times (5 times)
     More than 25 years: 5 times (5 times)
     The dates of operations
     Aug 2: 1 to 3 years, 3 to 5 years, 5 to 10 years.
     Aug 4: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.
     Aug 9: 5 to 10 years, 10 to 25 years, more than 25 years.
     Aug 10: 1 to 3 years, 3 to 5 years.
     Aug 16: 5 to 10 years, 10 to 25 years, more than 25 years.
     Aug 18: 1 to 3 years, 3 to 5 years, 5 to 10 years.
     Aug 23: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.
     Aug 25: 5 to 10 years.
     Aug 28: 1 to 3 years, 3 to 5 years.
     Aug 30: 5 to 10 years, 10 to 25 years, more than 25 years.
--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com
[TOPICS: MMJBJ$,M$A$$$,M$J$$$,MT$$$$,M$$FI$,MN$FI$]