Tokyo Returns, The BoJ May Be Tested Again

Tokyo returns after the elongated weekend in the wake of Friday’s Gilt-driven weakness in wider core global FI markets, although the longer end of the U.S. Tsy curve regained some poise as we moved through NY dealing.

• Flash PMI data, an address from BoJ Governor Kuroda and BoJ Rinban operations covering JGBs out to 10s headline the domestic docket today.
• We don’t expect Kuroda to provide much in the way of fresh information given the proximity to last week’s BoJ decision and post-meeting communique.
• We will also be on the lookout for any tweaks surrounding the quantity of the purchases deployed by the BoJ in its Rinban operations given bond market dynamics since Thursday’s Tokyo close.
• Proximity to Tuesday’s 40-Year JGB supply may also be felt in price action.