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Not Moved By BoJ

JGBS

JGB futures shrug off the latest BoJ decision, with the upcoming assessment of the Bank's QQE with YCC scheme on the back of the sustained deviation from its inflation target flagged ahead of time by the Nikkei. There is little scope for major policy tweaks stemming from the assessment given the Bank's comments re: QQE with YCC i.e. there is no need to change the framework. The corporate liquidity provision extension was in line with broader expectations, at least in terms of time horizon, with the scheme made a little more generous overall (see previous bullet for further details). Futures are now unchanged on the day, with little to no movement in the cash space after the break.

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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