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J.P.Morgan: Abe Resignation Impact Should Be Ltd To Equity & FX Channels

JGBS

J.P.Morgan note that "as long as monetary and fiscal policy stay generally unchanged, the impact on JGBs will likely be limited. JGBs may be impacted by equity or FX markets, but the sensitivity should be low. In particular, considering that (1) short-term rates are anchored with a minimum chance of a rate cut (or hike) any time soon and (2) the 10Y JGB yield will unlikely decline below 0% with a recent surge in macro add-on balance, volatility should continue to be low. We believe that PM Abe's resignation should not have a material impact and demand-supply dynamics will continue to dominate JGB market."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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