Noting a continuation of the recent upside in front-end JGBs, the 2-year yield breached below 0% on Monday session, this was the lowest level since late August
The last time the 2-yr JGB breached 0% to the upside, it was followed by a rise of about 15bps over the next couple of months.
However, the macroeconomic picture and policy expectations have shifted since the Noto earthquake. Yields have turned lower across the curve since investors now see the BoJ adjusting policy later this year
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