Futures Back To Neutral As Ueda Pushes Back Against Imminent YCC Tweak

JGB futures fully pare the remainder of their losses in early afternoon trade, after BoJ Governor Ueda poured cold water on any lingering ideas of an imminent BoJ policy tweak (specifically re: YCC). At the centre of his comments Ueda flagged the need for medium-term inflation expectations to be “quite strong” and close to 2% for the BoJ to consider further tweaks to YCC (a reminder that some outlets have previously flagged that the Bank will deploy a forecast somewhere between 1.6-1.9% in Friday’s outlook report). Cash JGBs are now little changed to 1bp richer, with 7s outperforming on the recent bid in futures.