Futures Unwind Kuroda Bid

JGB futures have now fully unwound Friday's post-Kuroda bid, with comments from BoJ Deputy Governor Amamiya re: the scope for creativity surrounding the 10-Year JGB yield band and the broader weakness in U.S. Tsy markets applying some pressure during overnight trade, as the contract shed 27 ticks vs. Tokyo settlement levels.

• Amamiya also noted that wider fluctuations in JGB yields would be ok if they didn't harm the impact of the BoJ's monetary easing. He also flagged that Kuroda's recent comments re: no real desire for a wider 10-Year JGB yield band were probably based on the Governor's personal views.
• Elsewhere, our policy team have flagged their understanding that the Bank of Japan could consider reducing the frequency of purchase of JGBs with a remaining life of 5 to 10 years to increase volatility in the market, although the scale of purchases per operation would be increased to stifle criticism from reflationists, including Deputy Governor Wakatabe.
• Wage data, the final Q4 GDP reading and 5-Year JGB supply headline the local docket on Tuesday.