MNI POLICY: BOJ Keeps Frequency of JGB Buying Ops in March

     TOKYO (MNI) - The Bank of Japan said Friday that it would leave the

frequency and scale of purchases of all Japanese government bonds in March

unchanged from Feb.

     But the BOJ said it would 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.

     Depending on conditions, purchase size per auction could be set at a fixed

amount or to an unlimited amount, the BOJ added.

     The BOJ's schedule sees it refrain from conducting JGB buying 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 March:

     The zones (amounts to be purchased in ranges)

     --1 to 3 years (Y300-Y550 bln in March vs. Y300-Y550 bln in Feb.)

     --3 to 5 years (Y200-Y450 bln in March vs. Y200-Y450 bln in Feb.)

     --5 to 10 years (Y200-Y500 bln in March vs. Y200-Y500 bln in Feb.)

     --10 to 25 years (Y50-Y200 bln in March vs. Y50-Y200 bln in Feb.)

     --More than 25 years (zero-Y50 bln in March vs. zero-Y50 bln in Feb.)

     The frequencies of operations in each zone in March plans vs Feb. 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: 2 times (2 times)

     --More than 25 years: 2 times (2 times)

     The dates of operations

     March 4: 1 to 3 years, 3 to 5 years.

     March 6: 5 to 10 years.

     March 9: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.

     March 11: 5 to 10 years.

     March 18: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     March 23: 10 to 25 years, more than 25 years.

     March 27: 1 to 3 years, 3 to 5 years, 5 to 10 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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