MNI POLICY: BOJ Cuts Size Oct Mid-, Long-, Long-End JGB Buys

--BOJ Keeps Frequency of JGB Buying Ops in October

     TOKYO (MNI) - The Bank of Japan said Monday it would lower the range of its

purchases of medium-, long- and super long-term Japanese government bonds in

October following the recent drop in yields.

     The scale of long-term bond buying operation was reduced to a range of Y200

billion to Y500 billion from the previous range of Y250 billion to Y550 billion,

with medium-term buys reduced to a range of Y200 to Y450 billion.

     Long-dated bonds saw the range cut to Y50 billion to Y200 billion from a

range of Y100 billion to Y250 billion and the range of super long-term JGB

buying was reduced to a range of zero to Y50 billion.

     Against that, the scale of short-term bond buying was increased to a range

of Y300 billion to Y550 billion.

     The BOJ left the frequency of its JGB purchases unchanged in October

compared to September, adding that it may increase the frequency as needed.

     It also said that the bank will conduct purchases in a flexible manner,

taking account of market conditions, aiming to achieve the target level of a

long-term interest rate specified by the guideline for market operations.

     The schedule sees the central bank refrain from conducting operations on

days when the Ministry of Finance holds auctions for JGBs or the BOJ board holds

policy meetings.

     --CALENDAR

     The planned JGB purchase operations in October:

     The zones (amounts to be purchased in ranges)

     --1 to 3 years (Y300-Y550 bln in Oct. vs. Y250-Y500 bln in Sept.)

     --3 to 5 years (Y200-Y450 bln in Oct. vs. Y250-Y500 bln in Sept.)

     --5 to 10 years (Y200-Y500 bln in Oct. vs. Y250-Y550 bln in Sept.)

     --10 to 25 years (Y50-Y200 bln in Oct. vs. Y100-Y250 bln in Sept.)

     --More than 25 years (zero-Y50 bln in Oct. vs. Y10-Y100 bln in Sept.)

     The frequencies of operations in each zone in Oct. plans vs Sept. actual.

     --1 to 3 years: 4 times (4 times)

     --3 to 5 years: 4 times (4 times)

     --5 to 10 years: 4 times (4 times)

     --10 to 25 years: 3 times (3 times)

     --More than 25 years: 3 times (3 times)

     The dates of operations

     Oct. 4: 5 to 10 years.

     Oct. 7: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.

     Oct. 15: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Oct. 18: 10 to 25 years, more than 25 years.

     Oct. 21: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Oct. 28: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Oct. 30: 10 to 25 years, more than 25 years.

--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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