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Forex Flash: BoJ Kuroda Diet comments bolstered JGB market - BBH

FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the new BoJ Governor juroda´s comments before the Diet bolstered the JGB market and the 10 year yield fell to now decade lows around 0.53%.

They see that he was sympathetic to merge the Asset Purchase Program (APP) with the ongoing rinban operation (monthly BOJ purchases of JGBs) and to scrapping the self-imposed BOJ rule that limits JGB holdings to the amount of banknotes in circulation. Essentially, they feel that Kuroda has reinforced market expectations for the April 3-4 BOJ meeting (no longer much talk of an earlier, emergency meeting) that the central bank will increase the amount and duration of its JGB purchases and may increase its purchases of riskier assets, such as REITS, as well. They finish by commenting, “Related, but separately, many expect the yen's weakness, on pause since earlier this month, will resume after the new fiscal year begins next week.”

Forex Flash: Kuroda re-emphasizes his aim to purchase longer-term JGBs - Nomura

Nomura Strategist Yujiro Goto notes that BOJ Governor Kuroda appeared in parliament (lower house) today for the first time since he took office.
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Forex Flash: Dijsselbloem post mortem - Nomura

In the aftermath of Dijsselbloem´s comments yesterday, Nomura economist Jacques Cailloux believes that there is nothing in what he said that is shocking, especially coming from the Dutch Finance Minister as it summarises well the long standing view of the Nordic countries.
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