JGB futures tested key resistance at 153.00....>

JGBS: JGB futures tested key resistance at 153.00 on Friday, after the BoJ left

the size of its 5-25+ Year operations unchanged, but the contract has eased back

from the level in the afternoon session. The suppressed outright JGB yield

levels have resulted in speculation suggesting that the BoJ may have to trim its

JGB purchases once again, owing to the flatness of the curve.

- BoJ Governor Kuroda gave an interview to Asahi, published on Saturday, noting

that "of course we would consider additional easing in a situation where gradual

momentum toward our 2 percent inflation target wasn't sustained." Kuroda

revealed that the Bank could lower its negative short-term rate, cut its

long-term yield target to below zero percent, buy more assets including JGBs or

step up the rate of expansion of the monetary base. The Bank could also consider

a combination of these measures if warranted.

- The Japanese docket is limited today.