Intriguing RV graphs: Yield curve steepener or flattener after BoJ's June meeting
Key points
JGB yield curve at a crossroads between a steepener and a flattener; trend reversal likely to hinge on BoJ's stance on rate hikes
Even though BEI of just over 2% suggests trend reversal approaching, if perception that government is exerting influence persists, trend reversal could still be far off
We see no need to rush into flattener trades; based on experiences in Europe/US, it should not be too late to wait until market trends are confirmed