MNI POLICY: BOJ Reduces Frequency, Ups Range of 1-5 Yr JGB Ops

--BOJ Leaves Frequency of 5-10-Year Ops at Five In November

     THE  - TOKYO (MNI) - The Bank of Japan said Wednesday that it will reduce

the frequency of its purchases of Japanese government bonds with a remaining

life of 1 to 3 years and 3 to 5 years to four times for each bucket in November,

down from five in each through October.

     However, alongside reducing the frequency, the BOJ increased the size range

of those remaining bond buying operations.

     The decision is aimed at further improving the functioning in the JGB

market.

     The BOJ said it "may increase the frequency as needed" and "will conduct

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

     --CALENDAR

     The planned JGB purchase operations in November:

     The zones (amounts to be purchased in ranges)

     --1 to 3 years (Y250-Y450 bln in Nov. vs. Y200-Y400 bln in Oct.)

     --3 to 5 years (Y300-Y550 bln in Nov. vs. Y250-Y450 bln in Oct.)

     --5 to 10 years (Y300-Y600 bln in Nov. vs. Y300-Y600 bln in Oct.)

     --10 to 25 years (Y150-Y250 bln in Nov. vs. Y150-250 bln in Oct.)

     --More than 25 years (Y10-Y100 bln in Nov. vs. Y10-Y100 bln in Oct.)

     The frequencies of operations in each zone in November (plans vs October

actual).

     --1 to 3 years: 4 times (5 times)

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

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

     --10 to 25 years: 5 times (5 times)

     --More than 25 years: 5 times (5 times)

     The dates of operations

     Nov. 2: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Nov. 5: 10 to 25 years, more than 25 years.

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

     Nov. 12: 5 to 10 years.

     Nov. 16: 5 to 10 years, 10 to 25 years, more than 25 years.

     Nov. 19: 1 to 3 years, 3 to 5 years.

     Nov. 26: 5 to 10 years, 10 to 25 years and more than 25 years.

     Nov. 28: 1 to 3 years, 3 to 5 years

     Nov. 30: 5 to 10 years, 10 to 25 years and 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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