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JGBS: Little Reaction To BOJ Minutes For Oct MPM

JGBS
BulletAPACFixed Income BulletsJapanMarkets

In Tokyo morning trade, JGB futures are holding overnight weakness, -8 compared to settlement levels.

  • The BOJ minutes revealed that one member noted market rates might be lower than appropriate given the BOJ's economic and price projections and its monetary policy guidance. Another member highlighted the difficulty in confidently projecting medium- to long-term rate hikes due to uncertainties about Japan's neutral rate and the transmission mechanism of monetary policy.
  • Life insurers were net buyers of long- and ultra-long-term JGBs for three straight months through November, making total net purchases of ¥2.9 trillion in the first 11 months, down 8.4% from a year earlier. (per BBG)
  • Cash US tsys are flat to 1bp richer in today’s Asia-Pac session after yesterday’s heavy session.
  • Cash JGBs are little changed across benchmarks. The benchmark 10-year yield is 0.4bp higher at 1.079% versus the cycle high of 1.113%.
  • The swaps curve has twist-flattened, pivoting at the 10-year, with rates 1bp lower to 4bps higher. 
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In Tokyo morning trade, JGB futures are holding overnight weakness, -8 compared to settlement levels.

  • The BOJ minutes revealed that one member noted market rates might be lower than appropriate given the BOJ's economic and price projections and its monetary policy guidance. Another member highlighted the difficulty in confidently projecting medium- to long-term rate hikes due to uncertainties about Japan's neutral rate and the transmission mechanism of monetary policy.
  • Life insurers were net buyers of long- and ultra-long-term JGBs for three straight months through November, making total net purchases of ¥2.9 trillion in the first 11 months, down 8.4% from a year earlier. (per BBG)
  • Cash US tsys are flat to 1bp richer in today’s Asia-Pac session after yesterday’s heavy session.
  • Cash JGBs are little changed across benchmarks. The benchmark 10-year yield is 0.4bp higher at 1.079% versus the cycle high of 1.113%.
  • The swaps curve has twist-flattened, pivoting at the 10-year, with rates 1bp lower to 4bps higher.