BoJ’s reduction in JGB buys gave a nice adjustment catalyst - Barclays

Analysts at Barclays are out with their afterthoughts on the Bank of Japan’s (BoJ) decision to trim the Japanese Government Bond (JGB) purchases announced earlier today.

Key Quotes:

The yen response to the reduction in JGB purchases by the Bank of Japan today may allow the bank to further reduce purchases.

It's a victory for the BoJ, given the market consensus is that the bank can't act as long as there's wariness over yen appreciation. Yet the yen barely budged.

The 5-10 year zone had stayed at the "emergency" 450b level and had to be reduced at some point.

"The cut gave a nice adjustment catalyst as yields were facing downward pressures".