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Jgbs

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BOJ Weighs Bond Purchase Adjustments Amid Fiscal and Monetary Balance

Originally Published 7 months ago — by Reuters

Featured image for BOJ Weighs Bond Purchase Adjustments Amid Fiscal and Monetary Balance
Source: Reuters

Japan is considering buying back some of its long-term government bonds to control rising yields, alongside plans to reduce new issuance of super-long bonds, as part of efforts to stabilize the bond market amid increasing yields and market volatility. The decision will follow meetings with market participants and requires government approval, with the Bank of Japan also contemplating adjustments to its bond tapering policy.

BOJ announcement causes yen to slump against euro and affect USD/JPY.

Originally Published 2 years ago — by ForexLive

Featured image for BOJ announcement causes yen to slump against euro and affect USD/JPY.
Source: ForexLive

Traders and investors are holding off trading in JGBs, yen, and other Japan assets while waiting for the Bank of Japan's decision, causing spreads to widen and choppy, gappy price action in markets. The BOJ announcement is taking longer than expected, and the latest chatter suggests an examination of past monetary policy. Prior previews indicate a possible policy revision or a move on a 5-year JGB target option, but BOJ Gov Ueda has dismissed any change to YCC at this week's policy meeting.