MNI POLICY: BOJ Again Conducts JGB Gensaki Operation

     TOKYO (MNI) - The Bank of Japan on Tuesday offered to buy JPY500 billion of

JGBs under repurchase agreements for a second straight day following Monday's

first "gensaki" operation since March 2016.

     The operation is aimed at emphasizing the BOJ stance to stabilize financial

markets via "ample fund injection and asset purchases", as outlined in a

statement by BOJ Governor Haruhiko Kuroda on Monday.

     The BOJ Tuesday announced the operation at 0930 JST (0030 GMT), which was

earlier than Monday when the bank announced its operation at 1000 JST (0100 GMT)

following Kuroda's statement.

     Kuroda's statement Monday said "Global financial and capital markets have

been unstable recently with growing uncertainties about the outlook for economic

activity due to the spread of the novel coronavirus."

     "The Bank of Japan will closely monitor future developments, and will

strive to provide ample liquidity and ensure stability in financial markets

through appropriate market operations and asset purchases," he added.

     Kuroda didn't state his routine remark that the BOJ will not hesitate to

take appropriate action, with is seen by some as indicating the bank sees no

need to deepen the negative interest rate from -0.10% amid the absence of a

sharp yen rise.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MMJBJ$,M$A$$$,M$J$$$]