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MNI BRIEF:BOJ Addresses Strong Pressure On JGB Yields-Official

TOKYO (MNI)

The Bank of Japan's increase in bond purchases and conducting purchases of longer-end JGBs are aimed at trading the 10-year bond yield around zero percent as pressure mounts at the top end for the 10-year bond, a central bank Capital Markets Department official said on Wednesday.

The official said that there is strong upward pressure on overall yield curve and there is a risk that the 10-year bond yield could rise above 0.25%, an upper end of a range of -0.25% to +0.25% the BOJ tolerates, see: MN BRIEF: BOJ Ups Scale Of 5-10 Yr JGB Buying To JPY725 Bln.

The decisions are aimed at carrying out the guidelines for money market operations from the board and the BOJ will make changes in the auction schedule and amounts of outright purchases of JGBs as needed, taking account of market conditions.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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