MNI: BOJ Cuts 5-, 10-Year JGB Buying To Y410 Bln From Y430 Bln

     TOKYO (MNI) - The Bank of Japan on Friday reduced the size of its purchase

of Japanese government bonds with a remaining life of 5 to 10 years to Y410

billion from Y430 billion at the previous similar operation on June 22.

     The move, which was expected by some investors, is aimed at preventing the

10-year bond yield from falling further amid continued tight supply-demand

conditions.

     Friday's cut in the purchase amount for the zone was the first since June

1, when it was reduced to Y430 billion from Y450 billion in May.

     The yield on the 10-year bonds was little influenced by the operation, It

stood around 0.030%, little changed from earlier in the morning.

     The BOJ has been seeking an opportunity to lower the scale of its purchase

of JGBs with a remaining life of 5 to 10 years to the level before the BOJ

increased it early this year.

     On Feb. 2, the BOJ increased the scale of its purchase of JGBs in the

5-to-10-year zone to Y450 billion from Y410 billion. It also offered to buy an

unlimited amount of 10-year bonds at a fixed-rate of 0.110%, the first such

operation since July 7, 2017.

--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

[TOPICS: MMJBJ$,M$A$$$,M$J$$$,M$$FI$]