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REPEAT: MNI: BOJ Cuts Scale of Longer-Term JGB Buying

     TOKYO (MNI) - The Bank of Japan Wednesday reduced the scale of its
purchases of Japanese government bonds with a remaining life of more than 25
years in the wake of the recent decline in super long-term bond yields.
     The pace of BOJ purchases of those bond was reduced to Y70 billion from Y80
billion at the previous similar operation on Friday. The move was expected by
some JGB investors.
     It was the first reduction since Jan. 9, when the BOJ lowered the scale of
its purchases of long-term bonds to Y80 billion from Y90 billion.
     On Tuesday, the 30-year bond yield fell to 0.750% for the lowest level
since April 21, 2017, and the 40-year bond yield dropped to 0.875%,  the lowest
since Jan. 18, 2017.
     The BOJ's decision to lower the scale of its longer-term bond buying on
Jan. 9 was interpreted to mean by some market participants that the BOJ might be
considering unwinding its large-scale easing program, prompting the yen to firm
against the dollar.
     The impact of Wednesday's JGB operation on the foreign exchange market was
limited.
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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