HALISTER1: BOJ Policy Risks Lean Toward JGB-Led Bond Relief Rally: Citi

BOJ Policy Risks Lean Toward JGB-Led Bond Relief Rally: Citi

(Bloomberg) -- Expect a relief rally in JGBs as the steeper curve was signaled and priced a week ago, Citigroup strategists including Harvinder Sian write in client note.
  • Expect no rate cut or change in the JPY 80t JGB buying target
  • Should the BOJ cut, then this morphs into another global yield collapse
  • End of QQE is next year’s story and takes us closer to yield targeting and iterations on debt monetization
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Harvinder Sian (Citigroup Inc)

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