The Bank of Japan said Monday it has decided....>

BOJ: The Bank of Japan said Monday it has decided to leave the frequency of its

Japanese government bond purchases in August unchanged from July, indicating

there is no need to guide any particular bond yields higher or lower. The BOJ

also left unchanged its purchase plans for each JGB maturity zone. The market

focus was on whether the BOJ would change the per-auction size for JGBs with a

remaining life of 5 to 10 year from a range of Y350 billion to Y550 billion

planned for July after having to tweak the purchases early in the month in

response to rising yields.

- This is the third month that JGB purchases have been unchanged, sources note

that having weathered the recent storm of global politics/shift in central bank

rhetoric the quiet summer period should represent a period of stability.

- The BoJ did slightly reduce the target for Treasury Bills to around

Y25tln-Y27tln (Prev. Y26tln-Y28tln), this is after a large Y1.5tln purchase of

bills in July squeezed supply and demand conditions in the already tight sector.

- Going forward the 20-Year sector is seen as rich, yield around 13.5bp lower

than 2017 peak, so this sector could be in focus if they squeeze continues.