Resilience Noted Pre-BoJ

Early Tokyo trade sees a relatively resilient round of performance for JGBs, especially given the weakness seen in wider core global FI markets on Monday. The continued enforcement of the BoJ’s YCC policy (given the proximity of 10-Year yields to the upper boundary of the YCC band), and perhaps a lack of worry from Tokyo participants re: any hawkish utterances from the BoJ at today’s meeting, are likely providing support early on. That leaves the major cash benchmarks little changed to 2bp richer, with a flattening bias apparent, while JGB futures are now +9, building on the overnight uptick.