The BoJ left its headline MonPol settings......>

JGBS: The BoJ left its headline MonPol settings unch. & extended its forward

guidance re: extremely low interest rates out to the end of Spring '20.

Elsewhere the Bank's initial FY21 core CPI estimate was 1.6%, shy of the 2.0%

target, as expected.

- The Bank also decided to expand the eligible collateral for its provision of

credit, and noted that it is mulling the introduction of an ETF lending

facility.

- JGB futures registered fresh session highs on the back of the decision, though

the move was contained, and quickly reversed, with the contract subsequently

easing to fresh lows, as there was nothing that markets hadn't foreseen in the

release. The long end lead the way lower in cash trade, with twist steepening

giving way to bear steepening.

- Focus tomorrow removes to Rinban operations covering 5-10 Year JGBs, as well

as labour market and industrial production data.