JGB futures have traded in a choppy manner.....>

JGBS: JGB futures have traded in a choppy manner this afternoon, initially

ticking lower before recovering, although the contract's range has been somewhat

limited.

- Today saw the BoJ employ a relatively constant message at its latest MonPol

decision (some were looking for a more dovish tinge), as the Bank left its

MonPol settings unchanged, with a 7-2 vote re: YCC matters, as Harada & Kataoka

dissented. The Bank trimmed its CPI outlook as exp., cut its FY18 growth

outlook, and nudged its FY19 & FY20 GDP exp. slightly higher. The BoJ noted that

downside risks to the economy and inflation had grown. The Bank has decided to

extend its lending scheme to support growth foundations for another year.

- This comes after the space stuck to a tight range in the morning session.

- Yields trade mixed, with 10-Year JGBs yielding 0.000% and the super-long end

experiencing some marginal outperformance.

- Focus tomorrow turns to 20-Year JGB supply.