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Markets Seemingly Cognisant Of Off-Schedule BoJ Purchase Threat

JGBS

The Tokyo open saw JGB futures post an incremental look through last week’s lows on the firmer than expected domestic CPI data and spill over from Monday’s bear flattening in U.S. Tsys, before the contract worked away from lows.

  • Still, it would seem that the threat of off-schedule BoJ bond purchases is shielding paper out to 10s from deeper losses, given the fact that 10-Year yields are probing the upper end of the BoJ’s tolerance band. JGB futures now trade +1 and cash JGBs are little changed to 1bp cheaper across the curve.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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