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

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."