The BOJ will be conducting another of its scheduled JGB buys today
Buying in the 1 to 3 year
- and the 3 to 5 year windows
Last week saw the Bank reduce its buys in the 5 to 10 year maturity window: BOJ buys 410bn yen in 5-10yr JGBS (vs. 440bn prior)
- This was the second reduction in 5 - 10 y JGB purchase amounts this month
The Bank has been buying less as it has switched its focus from targeting a set amount of purchases each year (they still tell us they have the target, 80 tln yen of JGB buys ... but don't believe 'em, they haven't!) to purchases for Yield Curve Control (he YCC policy). BOJ Governor Kuroda has noted that as the bank buys more and MOAR they impact of their buying increases! Cloud, meet silver lining, right?
Is there a possibility of a reduction in purchases in the 3 - 5 year zone today? Some early Monday chatter out of Tokyo that it is.
Stay tuned, results of the auction will hit around 0110GMT.
