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

Repeats Story Initially Transmitted at 06:34 GMT Feb 28/01:34 EST Feb 28

     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