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Mulls Reduction In Bond Purchases: Sources

BOJ
  • The Bank of Japan are said to be mulling a reduction in bond buys as early as the June 14th meeting, according to Bloomberg sources, however they are said to be watching markets until the last moment before deciding, with the Bank having no intention to surprise bond traders.
  • MNI's Policy Team in Tokyo team had previously reported that bank officials see the need to clarify the pace of lowering JGB buying to pave the way for market players to factor in future reductions smoothly. The BOJ has also not determined by how much it can shrink its JPY590 trillion balance of JGBs. The fact that this idea has already been relatively widely discussed probably limits the scope of the move that came alongside the Bloomberg headlines, although growing newswire speculation will add greater weight to the idea.

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