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MNI BRIEF: BOJ Offers Same-Day Settlement On Higher Repo Rate

(MNI) Tokyo

The Bank of Japan on Monday offered to buy JPY2 trillion of Japanese government bonds through the same-day settlement operation under repurchase agreement for the first time since July 2006.

The operation is aimed at lower repo rates, which rose on Monday, as the BOJ has vowed to stabilize short-term interest rates at low levels. In theory, if the BOJ leaves the repo rate higher, it could push up the unsecured overnight call loan rate to positive territory. The BOJ is targeting the overnight call loan rate at -0.10%.

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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