Latest news with #bondpurchases
NHK
3 days ago
- Business
- NHK
BOJ to slow cuts in bond buying in April next year
The Bank of Japan has decided to slow the pace of reductions in bond purchases next year to avoid market instability. The bank's target of around 0.5 percent for short-term rates will remain in place. It made the announcements after its two-day policy meeting ended on Tuesday. The BOJ decision comes amid uncertainty about the outlook for Japan's economy after US President Donald Trump's imposed additional import tariffs this year. Investors have been watching for clues to how the central bank may adjust its plan for cutting the amount of Japanese government bonds it purchases monthly. From April 2026, the BOJ will aim to reduce purchases by about 200 billion yen, or 1.3 billion dollars, every three months. That compares with the current plan to cut the amount by about 400 billion yen, or 2.7 billion dollars, every quarter. "Long-term interest rates should be formed in financial markets in principle," BOJ Governor Ueda Kazuo said at a news conference. "It is appropriate for the Bank of Japan to reduce its purchase amount of Japanese government bonds in a predictable manner, while allowing enough flexibility to support stability in the JGB market. If the pace of reduction is too fast, that could have an unexpected effect on market stability. The balance between these two ideas and the opinions of the market participants were taken into account at today's meeting. The measures were decided to improve JGB market functions and provide stability." The JGB market has been volatile recently due to concerns over worsening fiscal health, sometimes causing prices to fall and long-term yields to rise sharply.
Bloomberg
4 days ago
- Business
- Bloomberg
BOJ to Weigh Slowdown in Bond Buying Cuts After Volatility Rises
The Bank of Japan is set to consider whether to taper its bond purchases at a slower pace while also leaving its benchmark interest rate unchanged, in a decision that will be closely scrutinized by the bond market. All 53 BOJ watchers surveyed expect no change in the BOJ's 0.5% interest rate at the two-day gathering concluding Tuesday. The spotlight will instead fall on the BOJ's updated plan to curtail its purchases of government bonds as it seeks to shrink its footprint in the market. About two-thirds of respondents expect the cutbacks will be smaller from April compared with the current pace.
Japan Times
7 days ago
- Business
- Japan Times
Finance chief Kato says talks with market players key for bond issuance
Finance Minister Katsunobu Kato said that discussions with market participants is a key factor in making sure that government bonds are bought and sold stably, as the ministry neared a closely watched gathering with investors. "We are engaged in thoughtful and careful dialogue with the market, and it is incumbent upon us to make sure that government bonds are being bought,' Kato said in an interview with Bloomberg TV on Friday. As the Bank of Japan steps back from bond purchases, the government needs to find other investors to fill the gap, he said. Kato's comments come as the ministry is scheduled to hold a meeting with primary dealers on June 20, three days after the BOJ is broadly expected to slow its pace of bond purchase cuts.
Bloomberg
09-06-2025
- Business
- Bloomberg
BOJ Likely to Ease Tapering Pace of Bond Buys, Ex-Official Says
The Bank of Japan is likely to slow the pace of tapering its government bond purchases next fiscal year at the board's upcoming meeting, according to a former BOJ executive director in charge of monetary policy. The central bank has reduced the monthly pace of bond buying by ¥400 billion ($2.8 billion) per quarter since last summer. Whether it'll maintain that tempo in fiscal 2026 is a key focus of the two-day gathering ending on June 17.
Bloomberg
03-06-2025
- Business
- Bloomberg
BOJ's Ueda Hints at Chance of Continuing to Cut Bond Purchases
Bank of Japan Governor Kazuo Ueda hinted that the central bank could continue to slow the pace of government bond purchases next fiscal year, as the board's decision over bond buying approaches. 'Many opinions indicated that it's appropriate to keep cutting the bond purchases while balancing predictability and flexibility,' Ueda said Tuesday, summarizing views expressed by bond market participants at meetings hosted by the BOJ last month. Ueda was responding to questions in parliament.
