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Holding Steady Post-BoJ


Nothing in the way of meaningful lasting reaction to the latest BoJ decision, which saw the Bank leave its broader monetary policy settings unchanged. Futures +7, with the major benchmarks generally holding around 1.0-1.5bp richer in cash trade. 7s the underperformer (a mere 0.3bp richer at typing) after yesterday's futures driven weakness for that particular benchmark.

  • In terms of BoJ specifics, board member Masai abstained on the yield curve control and asset purchase votes. Board member Kataoka opposed the yield curve control decision, as ever, pushing for lower interest rates. He also pushed for the forward guidance to be related to the price stability target, while noting the need for greater fiscal and monetary policy coordination (nothing new there).
  • Elsewhere, the Bank extended the life of its Special Funds Supplying Operations to Facilitate Financing in Response to COVID-19 by 6 months through the end of March '22, as expected. Masai also abstained here.
  • The Bank also noted that it will outline a new fund provisioning measure surrounding climate change at its July meeting, which will succeed the existing fund provisioning measure to support the strengthening the foundations for economic growth (which will run through June '22, as scheduled).
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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