The BoJ will today announce their bond.........>

JGBS: The BoJ will today announce their bond buying plan for August

(0900BST/1700JST). After increasing purchases in the medium term sector in July

to contain yields the bank have started to reverse this process with yields now

receding. The bank are likely to keep purchases unchanged, the recent changes

indicate the bank do require some discretion with purchases and they reiterated

at their meeting they would keep the monetary base unchanged noting that YCC was

flexible.

*Summary of BoJ purchase operations for July (including recent changes):

- 1-3 Year: Range: Y200bln-Y300bln, previous purchase Y280bln (reduced by Y20bln

on 5 April)

- 3-5 Year: Range: Y250bln-Y350bln, previous purchase Y330bln (reduced by Y30bln

12 Apr, Y30bln on 24 April, Y20bln on 1 May, raised by Y30bln 12 June)

- 5-10 Year: Range: Y350bln-Y550bln, previous purchase Y500bln (raised by Y40bln

on 27 Jan, raised by Y50bln on 7 June, reduced by Y30bln on 24 June)

- 10-25 Year: Range: Y150bln-Y250bln, previous purchase Y200bln 

- 25+ Year: Range: Y50bln-Y150bln, previous purchase Y100bln