JGB futures were roiled in Friday's............>

JGBS: JGB futures were roiled in Friday's overnight session, as a RTRS sources

report suggested that "the BOJ is in unusually active discussions before this

July's MonPol decision, with changes to its interest-rate targets & stock-buying

techniques on the table. Discussion is preliminary & will depend on fresh

inflation forecasts. While a policy change this month could theoretically

include additional easing, debate for now focuses on ways to make the massive

stimulus programme more sustainable. The BOJ could tweak its YCC programme to

allow for a more natural rise in long-term interest rates to ease the pain on

banks from years of near-zero rates, they say. Other ideas include operational

changes to the way the BOJ buys gov't bonds & ETFs, a nod to critics who say the

bank's huge purchases are drying up market liquidity & distorting price action."

- BOJ Gov Kuroda downplayed the sources report at the weekend, stating "I know

absolutely nothing about the basis for those reports."

- Focus today will fall on the cash space's reaction to the story after JGB

futures closed 48 ticks lower & the BOJ's Rinban ops covering the 1-5 Year

sector.