HALISTER1: JGBs Drop Slightly as BOJ Refrains From Purchases Today: BofAML

JGBs Drop Slightly as BOJ Refrains From Purchases Today: BofAML

(Bloomberg) -- Japan govt bonds starts trading session on a weak note after BOJ announced no JGB purchases today ahead of 20-year auction tomorrow, says Shuichi Ohsaki, chief Japan rates strategist at BofAML.
  • BOJ likely to purchase JGBs on the 3 remaining trading days in October except for auction days tomorrow and Thursday; hence downside of super-long JGB market may be limited, says Tokyo-based Ohsaki by phone
  • Short- and medium-term JGB may face pressure to pare back expectation for deepening BOJ’s negative interest rates
  • 2-year yield rises 0.5bp to -0.245%, 5-year yield adds 0.5bp to -0.190%, 10-year yield increases 0.5bp to -0.055% and 20- year yield is little changed at 0.38%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Shuichi Ohsaki (Merrill Lynch Japan Securities Co Ltd)

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