JGB futures last +8 tick vs. settlement. -.....>

JGBS: JGB futures last +8 tick vs. settlement.

- Modest twist steepening initially crept into the curve in the wake of the

latest BoJ MonPol decision, with light pressure on JGB futures, although this

have more than reversed at writing.

- It was status quo for the BoJ in terms of policy settings, with the GDP & CPI

outlooks trimmed at the margin. Little to write home about all told,

disappointing those that were looking for a change in forward guidance. The Bank

also pledged to do more if required, once again that is nothing new.

- Focus now turns to BoJ Governor Kuroda's press conference.

- X-ccy basis gained attention again, with widening apparent cross curve.

Short-end driven by GPIF hedging talk from the weekend, while Philippine JPY

issuance was the driver of longer end x-ccy basis (the issuance should swap to

USD).