JGB futures opened lower after plunging........>

JGBS: JGB futures opened lower after plunging alongside US tsys after a hawkish

FOMC meeting. The Fed kept rates unchanged but put a December hike firmly on the

table as well as signalling balance sheet run off to begin in October. JGB's

were treading water ahead of the lunch break with the BoJ meeting in focus. 

- The BoJ kept all monetary policy unchanged, but the vote came in at 8-1. The

dissenter was Kataoka, one of the new board members, who lodged a dovish dissent

- a far cry from the hawkish dissent of the departed board members. This spurred

some chatter of further easing in the market and a bid in JGB's and Euroyen

STIRS. JGB futures head into the close at 150.81, flat on the session having

recouped all of the post FOMC losses.

- Yields are mixed across the curve, short end seeing some selling after the 1-5

Year enhanced liquidity auction yesterday saw heavy 5-Year buying, with the long

end supported on dip buying after Y16tln of redemptions yesterday was piled back

into duration. The belly is mixed ahead of the 5-15.5 Year enhanced liquidity

auction tomorrow. The 10-Year yield last up 0.6bp at 0.032% with JGB's

outperforming swaps in every maturity apart from 10's.