Offered On BoJ Chatter, But Off Lows

A JiJi source report pointing to the BoJ considering a suggestion re: the widening of the band that it allows 10-Year JGB yields to operate in is all that has mattered for JGBs on Monday, although the contract did recover some poise after the early pressure, finishing 16 ticks off the early Tokyo lows, -13 on the day.

• As we mentioned earlier, it was an unattributed report, with no indication re: the timing of any potential announcement, although most have chosen to focus on the BoJ's monetary policy review, set to be released in March, as a potential landing strip for any such move.
• The wings of the cash JGB curve were more robust than the belly, although the latter unwound early Tokyo underperformance, leaving 20s as the weak point on the day ahead of tomorrow's 20-Year JGB supply.