The yen response (lower) to the reduction in JGB purchases by the Bank of Japan today may allow the bank to further reduce purchases says Barclays
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"
