HALISTER1: JGBs Steady; Outcome of 2-Year Debt Sale ’Strong’: BofAML

JGBs Steady; Outcome of 2-Year Debt Sale ’Strong’: BofAML

(Bloomberg) -- Results of Japan’s auction of 2-year govt bonds were “strong” due to demand from overseas investors, BOJ’s debt purchases and prospects for further BOJ easing, says Shuichi Ohsaki at Bank of America Merrill Lynch.
  • Investors are likely to finish their trading activity ahead of Japan’s fiscal year-end on March 31 and liquidity in local bond market may be thin, says Ohsaki, chief Japan rate strategist at BofAML, in an interview; sees risk that BOJ’s debt purchases next week may spur choppy movements
  • Pre-auction concession trading for 10-year JGB sale on April 5 may start later next week, which could lead to a higher 10-year yield: Ohsaki: forecasts this yield to move in -0.10% to 0.00% range for coming week
  • 2-year yield down 0.5 bp to -0.225%, 10-year yield steady at -0.095% and 20-year yield up 0.5 bp to 0.400%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Shuichi Ohsaki (Merrill Lynch Japan Securities Co Ltd)

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