JGB futures stuck to a tight range this........>

JGBS: JGB futures stuck to a tight range this morning, and experienced a choppy,

yet range-bound re-open after the BoJ's latest MonPol decision.

- The BoJ stood pat on MonPol as expected, leaving its inflation expectations

largely unchanged (albeit 0.1% softer for FY 17 & FY18), while its growth

expectations were nudged higher. The BoJ removed the wording based on achieving

its 2% CPI goal around FY19. The BoJ noted that the momentum towards achieving

its 2% price target was intact, but not sufficiently firm. The new deputy

Governor Wakatabe didn't make any policy proposals. Kataoka was the sole

dissenter (yet again), with the vote sitting at 8-1. Kataoka wants the BoJ to

clarify that it will ease further if domestic factors delay the achievement of

its price target.

- JGB futures last trade 8 ticks higher at 150.64, with the curve running

flatter and swaps wider.

- 3-Month TIBOR fixed higher today as we head into next week's holiday period,

Japanese markets will be closed on Monday.