Just a little more colour on the Nikkei.........>

BOJ: Just a little more colour on the Nikkei interview with Kuroda.

- This will explain the pop in 10-Year JGB futures.

- "Ten-year rates have settled well below the level of "around zero" targeted by

the BOJ in its yield curve control policy, even considering that the central

bank has indicated it will tolerate rates 20 basis points above or below that

level. The yield on benchmark newly issued 10-year Japanese government bonds

sank to minus 0.295% on Wednesday, the lowest level in more than three years.

Kuroda suggested that the BOJ will accept this state of affairs for the time

being. But he hinted that this tolerance would not be unlimited, while avoiding

drawing a specific line in the sand.

"If there's no limit at all, the interest rate target of 'around zero' will

become meaningless," he said.

The central bank chief spoke more clearly about yields on ultralong-term debt

with maturities of 20 or 30 years, saying they have "fallen a bit too far."