JGB investment "extremely difficult" say BOJ Market Group members

BOJ Market Group meeting Minutes now published 17 June 2016

• following the introduction of the negative interest rate policy, liquidity and functioning of the JGB market have largely declined 
•  sluggishness of trading in the market can be described as "contracted equilibrium"
• more and more financial institutions are refraining from selling JGBs to prevent their current accounts at the Bank from increasing, while it is becoming increasingly difficult to reinvest in yen-denominated bonds with negative interest rates that are unprofitable

These meetings on 6/7 June were the third round of such discussions.

The group consists of 22 commercial banks, 25 securities firms and 21 from the buy-side.

Full Minutes here

Meanwhile USDJPY 104.21 still making its mind up.