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E6.5bln of 6-mo BOT At Jun 28 Auction

US 10YR FUTURE TECHS

‌‌(U1)‌‌ Consolidating

OPTIONS

Expiries for Jun24 NY cut 1000ET (Source DTCC)

JGBS
JGBS: The BOJ's Kuroda on Tuesday repeated how optimistic he was towards a 2%
inflation target for Japan, the 10-Year JGB began to take a bid post comments
from him and then again BOJ purchasing operations boosted JGB's, the 10-Year
moved 8 ticks post comments/purchasing and was last up 5 ticks on the Tokyo
session at 150.43.
- Capital Economics say the BOJ's purchases have fallen to around Y60tln per
annum and are likely to be cut further to Y40tln over the coming years. As the
bank looks likely to keep its target for 10-Year government bond yields
unchanged, this decrease in purchases shouldn't have an impact on financial
conditions. The BOJ today lowered purchasing of bonds with less than 1-Year to
mature from Y100bln to Y70bln
- At the weekend a poll indicated Yuriko Koike's of the opposing 'Party of
Hope's' support has fallen, setting Abe up for a fourth term as Prime Minister
as he vowed to continue to tackle the N. Korean Crisis.
- Yields are down across the curve very slightly within a very tight range, the
10-Year is flat at 0.056.