Little Net Reaction To Latest Rinban Tweak From BoJ

JGB futures initially firmed a touch as the BoJ lifted the size of its 10- to 25-Year BoJ purchases (to Y250bn from the Y200bn seen last time out), allowing the contract to tick further away from the recently registered Tokyo session lows after the pullback from the early spike through overnight highs had extended a little. That move was limited in both scope and the timeframe that it persisted, with the contract back around pre-Rinban offer levels, last +11. Note that purchase sizes in the buckets covering the 1- to 5-Year zone were left unchanged. Cash JGBs run 1-2bp richer across the curve, while the flattening seen in early swap trade has now morphed into a more parallel ~1bp shift lower in rates across that curve.