MNI BRIEF: Inflation Risks Now Shifted To Downside-BOE Ramsden

MNI: Goolsbee Says Stalled Inflation Means Wait Before Moving

MNI China Daily Summary: Friday, April 19

MNI BRIEF: China Hog Market More Balanced In Q2 - Ministry

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: BAKER HUGHES US RIG COUNT 619; OIL RIGS 511; GAS RIGS 106

EZ/UK Bond Supply Calendar: EU, UK Synd W/C 22 Apr, BoE APF Mon

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Early Upside Momentum Evident, BoJ Jan Minutes Noted Risks of Delaying NIRP Exit

JGBS
BulletMarketsFixed Income BulletsHomepageBank of Japan (BOJ) Market News

The early impetus in JGB futures (JBM4) has been to the topside, although we haven't been able to breach the 145.70 level. We were last at 145.68, +.28.

  • Positive spill over is evident from US futures, with the 10yr up to recent highs at 110.29+ +05+. The broader back drop around core yields has been to soften post recent dovish central bank tilts from the SNB and BOE (late last week).
  • Cash JGB yields are mostly lower, although more so at the back end. The 10yr is off around 1.5bps to 0.726%. The 2yr is only down a touch, last at 0.202%. The 10yr swap rate was last at 0.86%, off by around 1.5bps as well.
  • We have had the BoJ Jan minutes released, but they are largely superseded by actions at last week's Mar policy meeting, where NIRP was exited.
  • They noted the risks of not moving soon in terms of rates could mean more aggressive action later on. They also noted that easy conditions, along with bond buying, would be maintained if exit from NIRP was delivered.
  • Note we also have the enhanced liquidity auction later as well for the 1-5yr tenor.
193 words

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.

The early impetus in JGB futures (JBM4) has been to the topside, although we haven't been able to breach the 145.70 level. We were last at 145.68, +.28.

  • Positive spill over is evident from US futures, with the 10yr up to recent highs at 110.29+ +05+. The broader back drop around core yields has been to soften post recent dovish central bank tilts from the SNB and BOE (late last week).
  • Cash JGB yields are mostly lower, although more so at the back end. The 10yr is off around 1.5bps to 0.726%. The 2yr is only down a touch, last at 0.202%. The 10yr swap rate was last at 0.86%, off by around 1.5bps as well.
  • We have had the BoJ Jan minutes released, but they are largely superseded by actions at last week's Mar policy meeting, where NIRP was exited.
  • They noted the risks of not moving soon in terms of rates could mean more aggressive action later on. They also noted that easy conditions, along with bond buying, would be maintained if exit from NIRP was delivered.
  • Note we also have the enhanced liquidity auction later as well for the 1-5yr tenor.