HALISTER1: JGBs Likely to Bought on Dips Regardless of BOJ Decision: UBS

JGBs Likely to Bought on Dips Regardless of BOJ Decision: UBS

(Bloomberg) -- JGBs such as super-long debt are likely to bought on dips, regardless of whether BOJ eases monetary policy at this week’s meeting, says Yusuke Ikawa, salesperson at UBS Knowledge Network, in an interview.
  • Even if BOJ stands pat, investors’ buying of JGBs will probably persist as future easing can’t be ruled out: Tokyo- based Ikawa; says, under such a scenario, pressure for yen appreciation and stock weakness could increase, which may spur calls for additional QE by BOJ
  • Super-long sector is leading today’s JGB rally on back of Nikkei’s interview with GPIF’s President Takahashi and BOJ’s debt purchases, says Ikawa; notes Takahashi’s comments that 20- and 30-year yields are still positive and that any increase in fund’s investments would be made on daily basis
  • 5-year yield falls 1.5 bps to -0.235%, 10-year yield drops 3 bps to -0.105%, 20-year yield slips 6 bps to 0.305% and 30- year yield slides 7.5 bps to 0.335%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Yusuke Ikawa (UBS Asset Management Japan Ltd)

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