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MNI BRIEF: BOJ Buys Cheapest JGBs at 0.25%; Eases SLF Terms

(MNI) Tokyo
(MNI) Tokyo

The Bank of Japan said Wednesday it will continue to buy the No. 357 10-year JGB, currently the cheapest-to-deliver issue, at a fixed rate of 0.25% without a limit on size for the time being. it will also continue to purchase the No. 356 10-year bonds at a fixed-rate without a size limit until Sept. 20.

The bank has also relaxed terms through the Securities Lending Facility for the cheapest-to-deliver issues, such as the No 357, 358 and 359.

The moves are all aimed at curbing a rise in the 10-year bond yield, the benchmark JGBs, as policymakers continue with their easy policy and look to stay any future speculative attacks on bonds (see MNI INTERVIEW: BOJ To See Off Speculative Attacks- Ex-BOJ Aide).

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