The BoJ on Friday left the scale of its........>

JGBS: The BoJ on Friday left the scale of its purchases of Japanese government

bonds unchanged because the upward pressure on JGB yields was limited despite an

unexpected jump in U.S. Treasury yields overnight. However, the BOJ stands ready

to prevent an undesirable surge in JGB yields by increasing the amounts of its

outright or fixed-rate bond purchases. The central bank believes the current

yield curve based on the 10-year yield around zero percent is necessary to keep

the momentum toward achieving its 2% inflation target. The 10-year JGB yield

traded at 0.086% on Friday, up 0.8 basis points from Thursday's close. It rose

to 0.090% on Thursday for the highest level since July 12, 2017.

- JGB yields took an extra leg higher as US 10-Year yields hit 2.633% the

highest since March 2017. The move higher coincided with the US House advancing

the temporary funding bill to the Senate, but was driven mostly by technicals on

the break of the March 2017 high in yields as T-Bills were broadly unchanged.