JGB futures traded in a choppy manner in.......>

JGBS: JGB futures traded in a choppy manner in Wednesday's afternoon session,

initially ticking lower before recovering, then fading again into the close,

although the contract's range was somewhat ltd. The BoJ employed a relatively

constant message at its latest MonPol decision, leaving its MonPol settings

unchanged, with a 7-2 vote re: YCC matters, as Harada & Kataoka dissented. The

Bank trimmed its CPI outlook as exp., cut its FY18 growth outlook & nudged its

FY19 & FY20 GDP exp. slightly higher. The BoJ noted that downside risks to the

econ & inflation had grown. The Bank decided to extend its lending scheme to

support growth foundations for another year. In the subsequent press conference

BoJ Gov Kuroda said that downside risks to overseas econ are strengthening & the

BOJ must carefully watch for any impact on domestic firms' & households'

sentiment. Kuroda told reporters that the BOJ will conduct additional easing if

needed, although he didn't elaborate on what form such a move would take.

- Yields traded mixed, with 10-Year JGBs yielding 0.005% at the close and the

super-long end experiencing some marginal outperformance.

- Focus today turns to 20-Year JGB supply.