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BoJ Slashes JGB Purchases For April


JGB futures slid in overnight trade, with most of the move coming on the back of the BoJ's April Rinban plan, with the Bank set to buy Y550bn less paper in April vs. March. The contract finished overnight dealing 23 ticks below Tokyo settlement levels, with weakness in U.S. Tsys keeping a lid on the contract through the remainder of the session.

  • Early news flow has seen Yomiuri report that the Japanese government will apply COVID restriction to Hyogo and Miyagi prefectures. Elsewhere, Osaka has requested tighter COVID curbs covering a 3 week period. The Japan Times cited local media reports suggesting that new restrictions in Osaka could take effect as soon as today.
  • The Tankan survey headlines the local economic docket on Thursday, with 10-Year JGB supply also due.
Fig. 1: BoJ Rinban Plan For April Compared To Most Recent Rinban Operations
Residual MaturityPurchase Size Per Operation In April (Ybn)Previous Purchase Size Per Operation (Ybn)Number Of Operations In AprilNumber Of Operations In MarchEstimated Change In Monthly Purchases In April Vs. March (Ybn)
Under 1-Year150100About 12-50
1-3 Years47540045-100
3-5 Years45037045-50
5-10 Years45042045-300
10-25 Years20012012-40
25+ Years503012-10
JGBis6030About 1About 20
Floating Rate JGBs30501 A Quarter1 Every 2 Monthsn/a
Source: Bank of Japan
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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