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Analysts at TD Securities note that the  BoJ reduced its purchases of 5-10yr JGBs to JPY400bn from JPY450bn in the previous month but kept all other purchases the same.

Key Quotes

“This was their third tweak this month and reflects the continued fall in yields, with 10yr JGBs falling more deeply into negative territory.”

“Further tweaks are likely unless bonds reverse course. Separately Industrial production for July rose 1.3% m/m (mkt +0.3%), as compared to the 3.3% decline in June.”