Halister News

(Bloomberg) -- JGBs are falling, led by short- and medium-term sectors; 2-year yield up 1 bp to -0.220%, 5-year yield up 1.5 bps to -0.205%.

• Overnight call rate and short-term GC repo rate haven’t extended declines deeper into negative territory, G20 meeting has reduced expectations for a BOJ rate cut in March and outcome of BOJ’s debt purchases was weak, says Naoya Oshikubo, rates strategist at Barclays, in an interview
• “Against this backdrop, there’s a sense that the recent drop in short- to medium-term yields is excessive, so markets are undergoing a correction,” Tokyo-based Oshikubo says
• Sees investor demand for 10-year JGBs emerging when yields are near 0%; NOTE: 10-year yield is at -0.040% vs -0.070% on March 1
• Adds various investors including regional banks appear to be shifting their interest to 20-year tenor from 10-year tenor
• 20-year JGB yield down 1.5 bps to 0.480%