MNI BRIEF: BOJ Ups JGB Operations For Wednesday To Show Stance

The Bank of Japan on Tuesday showed its strong stance on curbing a rise in Japanese government bond yields by increasing the scale of its purchases planned for Wednesday.

The bank increased the scale of JGB purchases with a remaining life of 1 to 3 years and 3 to 5 years each to JPY625 billion from JPY475 billion. The scale of JGB buying with a remaining life of 5 to 10 years was increased to JPY800 billion from JPY500 billion, (See: MNI INTERVIEW: Ex-BOJ Economist Defends Easy Policy, Yield Cap).

The bank also announced it would conduct purchases of super long-term JGBs on Wednesday, although the operations were not scheduled on the day, and announced an increase in the scale of those bond buying operations. "From today (June 14), the Bank will make changes in the auction schedule and amounts of outright purchases of JGBs as needed, taking account of market conditions.”