2023-10-26 22:49:00
Bond prices are expected to rise on the 27th. Price indicators released in the United States indicate a slowing trend in inflation, continuing the trend of lower long-term interest rates. The smoldering expectations of the Bank of Japan’s policy revisions weigh heavily.
Kazuhiko Sano, chief fixed income strategist at Tokai Tokyo Securities, cited the improving external environment and the Bank of Japan’s regular purchasing operations as supportive factors, saying, “This week has turned bearish, so we will buy to adjust our holdings on the weekend and buy super long-term bonds. There is a possibility that there will be.”
Regarding the consumer price index (CPI) for Tokyo’s wards for October, which is announced before the start of trading, Mr. Sano believes that “it will not be seen as a factor unless it exceeds” market expectations.
The expected yield range for newly issued 10-year government bonds is 0.865% to 0.875% (0.88% on the 26th), and the December futures contract is 144.35 yen to 144.56 yen (144.26 yen on the 26th).
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In nighttime futures trading, the December contract ended at 144.43 yen, an increase of 17 sen from the daytime closing price on the 26th.
Bank of Japan operation
Regular purchases of government bonds are subject to remaining maturities of more than 3 years and less than 5 years, more than 5 years and less than 10 years, more than 10 years and less than 25 years, and more than 25 years.The previous purchase amounts were 450 billion yen, 675 billion yen, 200 billion yen, and 100 billion yen, respectively. Limit price operations to purchase unlimited 10-year government bonds at a yield of 1% were carried out every business day. They are eligible for delivery and are used to settle bond futures. The same operation targeting the cheapest stocks (cheapest) will continue.
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