JGB futures operated in a narrow range ahead...>

JGBS: JGB futures operated in a narrow range ahead of today's BoJ decision, with

the curve trading mixed, as yields in the 3-20 Year sector (ex. 5-Year) ticked

higher, while the wings of the curve outperformed.

- The BoJ left its monetary policy settings unchanged as expected, but JPY has

been on the back foot after the BoJ downgraded its view on inflation, some had

suggested that this could happen. There was no change elsewhere, with an 8-1

vote, and Kataoka the lone dovish dissenter as ever.

- Bears have so far failed to capitalise on Wednesday's sell-off in futures with

the recovery resulting in pops above the 100 & 200-DMAs. Bulls now need a close

above the 100-DMA (150.77) to ease bearish pressure and return focus to layers

of resistance 150.88-151.02. Daily studies correcting from oversold levels are

well placed for a fresh leg higher. Bears remain focused on 150.53-60 while the

100-DMA caps.