JGB investment "extremely difficult" say BOJ Market Group members

17 June 2016, 09:34
Sherif Hasan
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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.

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