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

JGBS: JGBs futures traded in a choppy manner in early Tokyo trade before drawing
support from an unch. BoJ MonPol decision, and after the BoJ noted that it will
re-examine economic & price developments at its next meeting, which could pave
the way for further easing measures. The BoJ also reiterated that it won't
hesitate to add firmer stimulus if it deems necessary and that downside risks
from overseas economies appear to be increasing. Elsewhere, the Bank highlighted
that it is paying "closer attention" to the risk of losing momentum towards its
2.0% inflation goal. Overall, the message was rather dovish. There was also No
declaration of a "reverse twist" operation at the BoJ, which we viewed as a low
probability outcome ahead of the meeting as recent market dynamics/Kuroda's
Nikkei interview allowed longer dated JGB yields to move away from cycle lows in
recent sessions.
- Futures +41 ticks last, with 5-10 Year sector of the curve outperforming.
10-Year yields last at -0.219%.
- CPI data & 5-25+ Year Rinban operations headline the local docket tomorrow.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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