HALISTER1: JGB Yield Curve Steepens on Concern Over 30-Yr Sale: SMBC Nikko

JGB Yield Curve Steepens on Concern Over 30-Yr Sale: SMBC Nikko

(Bloomberg) -- Yield curve of Japanese govt bonds is steepening, led by super-long tenors, amid worries that 30-year auction scheduled for tomorrow may face weak demand, says Souichi Takeyama, rates strategist at SMBC Nikko Securities.
  • There’s uncertainty over BOJ’s QQE program, says Tokyo-based Takeyama by phone; sees possible rise of 10-year JGB yield above 0% if 20-year yield extends gain
  • 20-year JGBs look relatively cheap on a 10y/20y/30y butterfly: Takeyama
  • 10-year yield up 1 bp at -0.010%, highest since March 16; 20-year yield up 2.5 bps at 0.425%; 30-year yield up 3.5 bps at 0.540%; 40-year yield up 3.5 bps at 0.605%
  • NOTE: BOJ to reaffirm monetary easing boost at Sept. 20-21 meeting, Nikkei says; BOJ may fine-tune policy tools at Sept. review, Reuters says
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Souichi Takeyama (SMBC Nikko Securities Inc)

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