MNI POLICY: BOJ Leaves Unchanged JGB Buying Frequency in Aug

--Also Leaves Unchanged Buying Plans for Each JGB Maturity Zone

--But Adds May Increase Frequency, To Buy in Flexible Manner

     TOKYO (MNI) - The Bank of Japan said Tuesday it has decided to leave the

frequency of its Japanese government bond purchases in August unchanged from

July, indicating there is no need to guide any particular bond yields higher or

lower.

     The BOJ also left unchanged its purchase plans for each JGB maturity zone.

     But the BOJ "may increase the frequency as needed" and "will conduct

purchases in a flexible manner, taking account of market conditions."

     it is "aiming to achieve the target level of a long-term interest rate

specified by the guideline for market operations."

     At its two-day policy meeting that ended on Tuesday, the BOJ board decided

to purchase JGBs so that the 10-year bond yield will remain at "around zero

percent."

     But the board also decided to allow the 10-year bond yield to "move upward

and downward to some extend" mainly depending on developments in economic

activity and prices. 

     The BOJ also said that it may announce additional JGB buying operations,

depending on market conditions.

     The BOJ refrains from conducting JGB buying operations on days when the

Ministry of Finance auctions JGBs and the BOJ board holds policy meetings.

     The planned JGB purchase operations in August:

     The zones (amounts to be purchased in ranges)

     1 to 3 years (Y200-Y300 bln in August vs. Y200-Y300 bln in July)

     3 to 5 years (Y250-Y350 bln in August vs. Y250-Y350 bln in July)

     5 to 10 years (Y300-Y500 bln in August vs. Y300-Y500 bln in July)

     10 to 25 years (Y150-Y250 bln in August vs. Y150-250 bln in July)

     More than 25 years (Y50-Y150 bln in August vs. Y50-Y150 bln in July)

     The frequencies of operations in each zone in August (vs. plans and actuals

in July).

     1 to 3 years: 6 times (6 times)

     3 to 5 years: 6 times (6 times)

     5 to 10 years: 6 times (6 times)

     10 to 25 years: 5 times (5 times)

     More than 25 years: 5 times (5 times)

     The dates of operations

     Aug. 1: 1 to 3 years, 3 to 5 years.

     Aug. 3: 5 to 10 years, 10 to 25 years, more than 25 years.

     Aug. 8: 1 to 3 years, 3 to 5 years, 5 to 10 years

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

     Aug. 15: 5 to 10 years, 10 to 25 years, more than 25 years.

     Aug. 17: 1 to 3 years, 3 to 5 years.

     Aug. 22: 5 to 10 years, 10 to 25 years, more than 25 years.

     Aug. 24: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Aug. 29: 10 to 25 years, more than 25 years.

     Aug. 31: 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 Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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