Free Trial

JGBs trod higher early on Thursday, on exp.....>

JGBS: JGBs trod higher early on Thursday, on exp. that the BOJ would up the size
of its 5-10 Year Rinban ops. The space also drew support from the latest
sell-off in the Nikkei 225, which was hampered by an earthquake in Japan & comes
shortly after a Typhoon hit earlier this week. There was also talk of paid swap
unwinds from abroad, which weighed on the longer end of the swaps curve,
allowing the JGB curve to steepen. The BOJ delivered & upped the size of 5-10
Year Rinban ops by Y50bn, in line with the upping of the 1-3 & 3-5 Year
purchases by Y50bn a piece earlier this week. This was largely exp. following
the trimming of the quantity of ops in the bucket in Sep (to 5 from 6), which
will result in a slightly lower amount of purchases if the size of the Rinban
ops are held constant with those conducted this week.
- The space was also supported by remarks from BOJ's Kataoka, who reiterated
that it is appropriate for the BOJ to conduct additional easing to quicken the
achievement of its CPI goal. He noted that he didn't see the need to allow long
term yields to move more flexibly when the BOJ is cutting its CPI exp. We
already knew that Kataoka dissented at the Bank's July MonPol decision.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.