[MARKET ANALYSIS] JGBs languish near this week's trough after recent curve steepening and with comments from BoJ hawkish dissenter Takata

The recent comments from BoJ hawkish dissenter Takata, along with the nomination of reflationists to the BoJ board, indicate sentiment is shifting towards tighter monetary policy in Japan.

Newsquawk StaffPublished On the live feed at , 20 minutes before this page
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[MARKET ANALYSIS] JGBs languish near this week's trough after recent curve steepening and with comments from BoJ hawkish dissenter Takata

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USTs: +2.5 ticks

  • Ekes slight gains, albeit with price action contained following the prior day's choppy performance and with US supply due later, including a 7yr note auction.

Bunds: +3 ticks

  • Lacks conviction after recent indecision and with very few fresh catalysts from the bloc.

JGBs: -18 ticks

  • Languishes near this week's trough after yesterday's selling pressure and curve steepening on stronger growth prospects after the Takaichi government nominated two staunch reflationists for the BoJ board, while there were recent comments from hawkish BoJ dissenter Takata who stated that the BoJ should make a further “gear shift” on rates and communicate on the assumption its price target is almost achieved.
Context

JGBs are under pressure, languishing near this week's lows, suggesting that the market is reacting to stronger growth prospects and questioning the current rate stance. This hawkish signal could influence the direction of Japanese yields and, consequently, affect global fixed income markets as investors adjust their rate expectations.

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