JGBs Likely To Open Lower; 10-Yr Yld Cap At 0.865%

JGBs are likely to open lower and extend Monday's pullback, following last week's hectic pace of advance that saw bond yields fall to their lowest in nine years. "The market is likely to remain in a corrective mood," says Kazuhiko Sano, chief strategist at Tokai Tokyo Securities, in a research note. The market hasn't declined for more than a couple of days since early April, however, and this time is unlikely to be any different, Sano says. The market is focused on the BOJ's two-day policy meeting, the results of which are due Wednesday. The BOJ is expected to keep its policy unchanged. Lead June JGB futures are tipped in 143.10-143.27 band vs 143.20 at Monday's close, while the benchmark 10-year bond yield is tipped in 0.850%-0.865% vs 0.855%.

JGBs Likely To Open Lower; 10-Yr Yld Cap At 0.865%

Find us on Google+