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MNI BRIEF: BOJ Sours On JGB Bond-buying Reduction

(MNI) Tokyo
(MNI) TOKYO

The Bank of Japan will likely not reduce the scale of its Japanese government bond purchases, mainly the five-10 year tenor, as concern mounts among bank officials that such a reduction could cause unnecessary bond-yield rises, MNI understands.

Bank officials are worried such a reduction could result in higher bond yields and force the BOJ to conduct further, more extraordinary bond purchases in future to address the issue.

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The Bank of Japan will likely not reduce the scale of its Japanese government bond purchases, mainly the five-10 year tenor, as concern mounts among bank officials that such a reduction could cause unnecessary bond-yield rises, MNI understands.

Bank officials are worried such a reduction could result in higher bond yields and force the BOJ to conduct further, more extraordinary bond purchases in future to address the issue.

Keep reading...Show less