The JGB curve has steepened today, with the....>

JGBS: The JGB curve has steepened today, with the 5-/40-Year yield differential

last 2.6bp steeper.

- Desks are pointing to a couple of protagonists behind today's move. Firstly

the global bond sell off observed late Wednesday and secondly a JiJi article

that didn't get much coverage, which once again points to the BOJ raising the

upper bound on 10-Year JGB yields from 0.1% at its meeting next week, while the

article expects the BOJ to maintain the central target of around 0%.

- Participants await the results of the latest 2-Year JGB auction.

- As noted earlier, at its July meeting, the BOJ will consider allowing the

nearly flat JGB curve to steepen slightly, recovering some functions of the

tepid market while keeping the stimulative effects of large-scale monetary

easing, MNI understands.

- Futures have failed to gain momentum below yesterday's low (150.57) thus far,

with a clean break opening up a move to hourly support from July 24 (150.45).