MNI POLICY: BOJ Cuts Scale of Longer-End JGB Buys To Y180 Bln

     TOKYO (MNI) - The Bank of Japan Tuesday cut the size of its purchase of

Japanese government bonds with a remaining life of 10 to 25 years to Y180

billion from Y200 billion at the previous similar operation on Feb. 4.

     The decision, expected by some bond players, came after the recent declines

in longer-end bond on the back of strong investor demand.

     The reduction in the 10/25-year bucket was the first since July 19, 2018,

when the bank lowered the scale to Y180 billion from Y190 billion, but the bank

increased the scale to Y200 billion from Y180 billion in December.

     The 30-year bond yield fell to 0.585% on Feb. 6 -- the lowest level since

December 2016 -- and the 20-year bond yield dropped to 0.410% on Feb. 1, the

lowest level since November 2016.

--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

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