HALISTER1: JGB Curve Steepens; Super-Long Bonds Being Sold, Says MUFJ-MS

JGB Curve Steepens; Super-Long Bonds Being Sold, Says MUFJ-MS

(Bloomberg) -- Japan’s sovereign yield curve steepens in wake of reports from Nikkei and other media on possible BOJ action, says Katsutoshi Inadome, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities.
  • NOTE: BOJ to explore delving deeper into negative rates, Nikkei reports; BOJ is said to mull change or abandonment of JGB maturity range
  • “Super-long bonds are being sold amid these speculation that’s starting to look more of a reality,” Inadome says by phone
  • Short- to medium-term JGB notes are being bought to price in potential deepening in negative rates or shortening of average duration: Inadome; says overall, BOJ could become more flexible on its buying program as well as deepen negative rates
  • 2-year yield down 2.5 bps at -0.280%, lowest since July 29, and 5-year yield down 2.5 bps at -0.200%, lowest since Aug. 2
  • 10-year yield up 1 bp at -0.015%; 20-year yield hits 0.495%, highest since March 14; 30-year touches 0.605%, highest since March 17
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Katsutoshi Inadome (Mitsubishi UFJ Financial Group Inc)

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