HALISTER1: JGBs Gain After Fed Rate-Hike Odds Drop, Yen Strengthens: JPM AM

JGBs Gain After Fed Rate-Hike Odds Drop, Yen Strengthens: JPM AM

(Bloomberg) -- JGBs rise on receding expectations of imminent Fed rate hike and yen’s appreciation, says Genji Tsukatani, Tokyo-based head of fixed income investment at JPMorgan Asset Management.
  • Outcome of 20-year bond auction was strong as JGB yield curve’s steepening spurred demand from investors: Tsukatani
  • Says market participants have probably priced in a possible BOJ decision to be flexible on its debt purchases at next week’s meeting
  • Looking at balance between BOJ’s bond purchases and amounts of issuance in 1- to 5-year and 10-year debt, Tsukatani doesn’t see a huge shift to short-term sector; says it’s appropriate to search for buying opportunities on back of curve’s steepening
  • NOTE: 20-year bond sale draws higher-than-estimated cut-off price
  • 10-year yield down 1 bp at -0.020%, 20-year yield down 3.5 bps at 0.430% and 30-year yield down 5.5 bps at 0.500%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Genji Tsukatani (JPMorgan Asset Management Japan Ltd)

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