BoJ to remain in focus – Danske Bank

According to analysts at Danske Bank, one of the key events for the Japanese markets and the global bond markets is the Bank of Japan meeting, which started today with the policy announcement tomorrow.

Key Quotes

“Last week, the BoJ announced twice that it would buy an unlimited amount of bonds. The last one on Friday was conducted when the 10-year JGB yield hit 0.10%. However, there has not been a bond purchase announcement this morning despite 10-year yields being marginally above the 0.10% yield level target.”

“We still hold the view that the BoJ will not change the yield target this week, as the risk of a stronger JPY would be clearly counterproductive for it to reach the inflation target. That said, a policy adjustment (fine-tuning) in Q3 has increased significantly.”