JGB's could see a turn around today after......>

JGBS: JGB's could see a turn around today after sharp declines in the past 2

session. The BoJ will conduct purchase operations in the 1-10 Year sectors, all

amounts are expected unchanged, one MNI source noted they see an outside change

of an increase shorter dated purchases as the BoJ could wish to signal intent

that the reduction on Tuesday was to steepen the yield curve rather than a

precursor to tapering. They posit that the reaction in yen could be a concern to

the BoJ, USD/JPY has slipped from around 113.40 at the start of the week to

111.50 last.

- Proponents of this theory also adduce that the Bank did not reduce purchase

ranges at their December announcement, the BoJ typically keeps JGB purchases in

the middle of target ranges.