MNI BRIEF: BOJ Extends JGB Buys, Longer Tenors To Check Yields

The Bank of Japan announced a fresh round of additional JGB purchases that included long- and longer-end debt to avoid a sharp yield gap to the 10-year bond yield target around 0%, MNI understands.

Under existing market conditions, the BOJ sees the need to further lower long- and longer-end JGB yields- 10-25 year and more than 25 years - as much as possible.

Apart from the additional bond purchases, the BOJ has extended the deadline for an unlimited purchases of JGBs at a fixed rate to 1500 JST (0600 GMT) from 1140 JST (0240 GMT) . This means that the BOJ, in a rare move, opened the door to buy as many bonds as market players want to sell to the end of market futures trade on Wednesday. On Tuesday, the BOJ announced an unlimited purchase of JGBs at a fixed-rate at 1010 JST and 1330 JST.