### The BoJ will announce their bond buying....>

JGBS: ### The BoJ will announce their bond buying programme for September at

0900BST/1700JST today. The bank have seized the opportunity to reduce bond

buying in certain sectors amid falling JGB yields, low volatility and a thin

summmer calendar. Market consensus around the reductions seem to be that this is

not "stealth tapering" but rather a move to ensure the sustainability of YCC

amid tight supply demand conditions.

>> POV: There is a plethora of opinion within the market, but while there is a

chance that the ranges will be reduced to reflect new "mid-points" most believe

that the bank will keep the ranges unchanged to allow scope to control yields in

the event of market shocks such as the FOMC meeting where the board are expected

to outline plans to reduce the balance sheet, and widespread expectations that

ECB will discuss QE taper soon. September also sees Y19.3tln of JGB redemptions

which will affect positioning. The 5-10 Year zone is in focus, this is the only

sector where purchases are below the mid point of Y450bln (currently Y410bln,

matching the lowest ever in the sector). But this is the maturity specifically

targeted by the BoJ, so they will likely prefer to keep some ammo in reserve.