Plenty Of Chop, BoJ Remains Hands Off

JGB futures also followed the broader swings, finishing 25 ticks softer vs. yesterday's settlement, with 7s underperforming in cash trade, cheapening by ~2.0bp. The broader core FI dynamic helped the contract off its early Tokyo lows, with the Nikkei 225 shedding 4.0% as global equities continued to struggle.

• The BoJ chose not to step in to protect the upside of its permitted trading band for 10-Year JGB yields (highs of ~0.18%, limit of ~0.20%), despite some speculation that it may do so.
• Elsewhere, BoJ Governor Kuroda flagged that the BoJ doesn't want to raise the midpoint of the permitted 10-Year JGB yield trading band, although that was never really seen as a point of debate for markets.
• We also saw a mixed 2-Year JGB auction, with the tail a touch narrower than prev. alongside a softer cover ratio, while the low price comfortably topped broader dealer estimates (BBG dealer poll 100.380).