HALISTER1: Japan’s T-Bill Yields Likely to Stay Low on BOJ Policy: MUFJ-MS

Japan’s T-Bill Yields Likely to Stay Low on BOJ Policy: MUFJ-MS

(Bloomberg) -- BOJ is guiding overnight call rates below zero and demand-supply balance is very tight in Japan’s T-bill market, says Katsutoshi Inadome, senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities, in an interview today.
  • “I don’t think this situation will change in two or three months,” says Tokyo-based Inadome; says buyers may include domestic investors who need to park their cash as well as global funds using basis swaps
  • Yield on 3-mo. T-bills dropped to -0.479% on April 8, lowest level in Bloomberg data going back to 1992
  • Japan’s T-bill auction conducted on April 7 drew bid-to- cover ratio of 5.09, highest since Nov. 5
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Source: BFW (Bloomberg First Word)

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Katsutoshi Inadome (Mitsubishi UFJ Financial Group Inc)

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