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JGBs ground higher on Friday after the BoJ.....>

JGBS
JGBS: JGBs ground higher on Friday after the BoJ stood pat on MonPol as
expected, leaving its inflation expectations largely unchanged (albeit 0.1%
softer for FY17 & FY18), while its growth expectations were nudged higher. The
BoJ removed the wording based on achieving its 2% CPI goal around FY19. The BoJ
noted that the momentum towards achieving its 2% price target was intact, but
not sufficiently firm.
- The new deputy Governor Wakatabe didn't make any policy proposals. Kataoka was
the sole dissenter (yet again), with the vote sitting at 8-1. Kataoka wants the
BoJ to clarify that it will ease further if domestic factors delay the
achievement of its price target.
- Today's re-open of course comes after the long holiday weekend.
- US 10 Year Tsy yields have consolidated <3.0%.
- Today's focus will fall on the BoJ's Rinban ops covering the 5-10 Year bucket.
- Barclays believe that "today could see buyers initially take the upper hand.
JGB settlement switches to T+1 from T+2 starting today and markets will be
watching whether this transition goes smoothly."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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