BOJ Leaves Unchanged JGB Buying Frequency in September

--Largely Leaves Unchanged Buying Plans for Each JGB Maturity Zone

--Slightly Lowers 5- To 10-Year Zone Buying Range To Y300-Y500 Bln

     TOKYO (MNI) - The Bank of Japan said Thursday it has decided to leave the

frequency of its Japanese government bond purchases in September unchanged from

August, indicating there is no need to guide any particular bond yields higher

or lower.

     The BOJ largely left unchanged its purchase plans for each JGB maturity

zone.

     As expected, the BOJ slightly lowered its purchase plans per operation for

JGBs with a remaining life of 5 to 10 years to a range of Y300 billion to Y500

billion in September from a range of Y350 billion to Y550 billion in August in

line with its recent purchase patterns.

     On July 7, the BOJ increased the scale of those bond buying to Y500 billion

from Y450 billion to curb higher bond yields.

     But the scale was reduced to Y470 billion on July 24, to Y440 billion on

Aug. 16 and to Y410 billion on Aug. 25 due to the drop in 10-year bond yields

caused by continued tight supply-demand conditions and geopolitical risks.

     The BOJ also said Thursday that it may announce additional JGB buying

operations, depending on market conditions.

     The BOJ refrains from conducting JGB buying operations on days when the

Ministry of Finance auctions JGBs and the BOJ board holds policy meetings.

     The planned JGB purchase operations in September:

     The zones (amounts to be purchased in ranges)

     1 to 3 years (Y200-Y300 bln in Sep vs. Y200-Y300 bln in Aug)

     3 to 5 years (Y250-Y350 bln in Sep vs. Y250-Y350 bln in Aug)

     5 to 10 years (Y300-Y550 bln in Sep vs. Y350-Y550 bln in Aug)

     10 to 25 years (Y150-Y250 bln in Sep vs. Y150-250 bln in Aug)

     More than 25 years (Y50-Y150 bln in Sep vs. Y50-Y150 bln in Aug)

     The frequencies of operations in each zone in September (vs. plans and

actuals in August)

     1 to 3 years: 6 times (6 times)

     3 to 5 years: 6 times (6 times)

     5 to 10 years: 6 times (6 times)

     10 to 25 years: 5 times (5 times)

     More than 25 years: 5 times (5 times)

     The dates of operations

     Sept 1: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Sept 4: 10 to 25 years, more than 25 years.

     Sept 6: 5 to 10 years.

     Sept 8: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.

     Sept 13: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Sept 15: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.

     Sept 19: 5 to 10 years.

     Sept 25: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Sept 27: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.

     Sept 29: 5 to 10 years, 10 to 25 years, more than 25 years.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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