VIEW: Goldman Sachs note that the "BoJ's.......>

JGBS: VIEW: Goldman Sachs note that the "BoJ's planned schedule of JGB purchases

for July showed increases in the purchase range for JGBs up to the 10y maturity

sector, while purchase amounts of ultra-longs were left unchanged. This comes

under a backdrop of rising supply following the passage of the second

supplementary budget for the fiscal year ending Mar-21 at the end of May to

finance stimulus measures. While the increase in issuance is skewed toward

shorter maturities, incremental supply at the long end, taken together with the

lack of BoJ buying in that sector should support a steeper curve. The BoJ's

apparent tolerance for this, taken together with our expectations for a 2H20

recovery and a likely reduced bid for JGBs keeps us in 10s30s JGB steepeners,

but we switch to a trailing 3bp stop."