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REPEAT: MNI: BOJ Leaves JGB Buying Frequency Unchanged in Oct

MNI (London)
Repeats Story Initially Transmitted at 08:47 GMT Sep 28/04:47 EST Sep 28
--But BOJ Lowers Range of Longer-End Bond Buying
     TOKYO (MNI) - The Bank of Japan has reduced the purchase range for its
super-long-dated Japanese government bond operations in October, but said it
will leave the frequency of overall purchases unchanged from September,
indicating no need to guide any particular bond yields higher or lower.
     The BOJ has lowered the indicated range for purchases of JGBs with a
remaining life of 25 years or more to Y10 billion to Y100 billion, changed from
a previous range of Y50 billion to Y150 billion.
     The decision reflected the BOJ's judgement that super-long JGB
supply/demand remained tight, allowing the BOJ to lower their purchase range.
     The BOJ left its purchase plans for other JGB maturity buckets unchanged.
     However, the BOJ said it "may increase the frequency as needed" and "will
conduct purchases in a flexible manner, taking account of market conditions."
     --TOTAL OPS UNCHANGED
     In September, the BOJ reduced the frequency of its purchases of JGBs with a
remaining life of 1 to 10 years to five times from the six operations conducted
in August. The decision was based on there being fewer business days in
September.
     However, the BOJ has retained the schedule of 5 operations for October,
viewing the reduction as contributing to increased functioning and price-making
in bond markets.
     The BOJ's schedule sees it refrain from conducting JGB buying operations on
days when the Ministry of Finance auctions JGBs or the BOJ board holds policy
meetings.
     --CALENDAR
     The planned JGB purchase operations in October:
     The zones (amounts to be purchased in ranges)
--1 to 3 years (Y200-Y400 bln in October vs. Y200-Y400 bln in September)
--3 to 5 years (Y250-Y450 bln in October vs. Y250-Y450 bln in September)
--5 to 10 years (Y300-Y600 bln in October vs. Y300-Y600 bln in September)
--10 to 25 years (Y150-Y250 bln in October vs. Y150-250 bln in September)
--More than 25 years (Y10-Y100 bln in October vs. Y50-Y150 bln in September)
     The frequencies of operations in each zone in October (plans vs September
actual).
--1 to 3 years: 5 times (5 times)
--3 to 5 years: 5 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
     Oct. 3: 1 to 3 years, 3 to 5 years, 5 to 10 years.
     Oct. 5: 10 to 25 years, more than 25 years.
     Oct. 10: 5 to 10 years.
     Oct. 12: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.
     Oct. 17: 1 to 3 years, 3 to 5 years, 5 to 10 years.
     Oct. 19: 10 to 25 years, more than 25 years.
     Oct. 24: 5 to 10 years, 10 to 25 years, more than 25 years.
     Oct. 26: 1 to 3 years, 3 to 5 years, 5 to 10 years.
     Oct. 30: 1 to 3 years, 3 to 5 years, 10 to 25 years, 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
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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