The Bank of Japan (BoJ) lowered purchases of longer-dated Japanese government bonds at its regular operations this morning, notes the research team at Danske Bank.
Key Quotes
“The BoJ cut buying in the 10-25Y segment by JPY10bn and also cut buying in the ultra-long end with maturities beyond 25Y by JPY10bn from JPY70bn to JPY60bn. It is the fourth time since May where the BoJ has cut its overall purchases.”
“The reduction in the purchases was widely expected in the market and comes after substantial flattening pressure on the government bond yield curve and rally in USD/JPY, which broke above 112 last week.”
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