MNI: BOJ Leaves JGB Buying Frequency Unchanged in December

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

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

frequency of its Japanese government bond purchases in December unchanged from

November, indicating there is no need to guide any particular bond yield higher

or lower.

     The decision means the BOJ is comfortable with the current yield curve.

     The BOJ also left unchanged its purchase plans for each JGB maturity zone.

     Under its yield curve control policy framework, the BOJ is seeking to

stabilize the 10-year government bond yield, the benchmark for long-term

borrowing costs, "around zero percent" and keep the overnight interest rate at

-0.1%.

     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 December:

     The zones (amounts to be purchased in ranges)

     1 to 3 years (Y200-Y300 bln in Dec vs. Y200-Y300 bln in Nov)

     3 to 5 years (Y250-Y350 bln in Dec vs. Y250-Y350 bln in Nov)

     5 to 10 years (Y300-Y500 bln in Dec vs. Y300-Y500 bln in Nov)

     10 to 25 years (Y150-Y250 bln in Dec vs. Y150-250 bln in Nov)

     More than 25 years (Y50-Y150 bln in Dec vs. Y50-Y150 bln in Nov)

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

actuals in November)

     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

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

     Dec. 6: 5 to 10 years.

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

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

     Dec. 15: 10 to 25 years, more than 25 years.

     Dec. 18: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Dec. 20: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.

     Dec. 25: 5 to 10 years, 10 to 25 years, more than 25 years.

     Dec. 27: 1 to 3 years, 3 to 5 years.

     Dec. 28: 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 BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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