Little Net Movement After BoJ Purchases

Contained two-way price action in JGB futures around the details of the latest round of BoJ Rinban purchases given the unknown size and tenor focus heading into the operation, with the continued focus on the 3- to 10-Year sector probably providing little in the way of surprise as the Bank looks to enforce its YCC settings post-tweak. Meanwhile, the size of the purchases was within the confines of the upsized purchase bands that the BoJ has announced for Q1 (3- to 5-Year bucket: Y500-650bn, 5- to 10-Year bucket: Y575bn-775bn). Futures are little changed vs. pre-announcement levels, last +62, 10 back from session highs that came around the time of the purchase announcement. Cash JGBs have held their early bull flattening bias.