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The lack of a supplementary budget in the current Diet session ending on June 16 will prevent the supply and demand conditions in the bond market from worsening, MNI understands.
The decision could create an environment for the Bank of Japan to consider reducing the scale of its purchases of Japanese government bonds, but an imminent reduction of bond buying is unlikely.
The government and ruling coalition have decided not to compile a supplementary budget this fiscal year in the current Diet session, the Yomiuri Shimbun reported on Monday.
The government can cope with developments of economic conditions through reserve funds totaling JPY4 trillion unless the infection surges.