/JGBS: Seeing some yen strength early in Asia...>

YEN: /JGBS: Seeing some yen strength early in Asia as BoJ Governor Kuroda

delivers speech with a slightly less dovish tilt than in his usual rhetoric,

comments come at a slightly nervy time for markets after the tantrum that

followed the BoJ reduction in long end purchases early last week.

- Kuroda was upbeat on the economy and said that core CPI is likely to rise

towards the 2% taret, adding that the Bank will "adjust policy to keep momentum

for 2% target". While these comments are not groundbreaking from Kuroda the

combination of upbeat assessment on the economy and the ackowledgement that the

Bank will adjust policy (i.e. potentially tightening as well as keeping easy

policy if necessary) has seen yen strengthen.

- USD/JPY briefly dropping to 110.82, the lowest levels since September 2017,

before recovering to 110.90 - down 16 pips on the session last.

- JGB's are unreactive, up 7 ticks on the session at 150.55. Market awaits the

latest BoJ JGB purchases in approx 40 mins time, 5-10, 10-25 and 25+ Year on the

docket. Super long JGBs have recovered after their drop, move could accelerate

post ops, quelling speculation that further reductions are on the cards.