BOJ Isn’t Tapering as Bond Plan Lets Superlong Yields Rise: SMBC
Source: BFW (Bloomberg First Word)
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8301 JP (Bank of Japan)
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Souichi Takeyama (SMBC Nikko Securities Inc)
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(Bloomberg) -- Bank of Japan’s detailed bond buying plan does not imply tapering, which will first require a change to the bank’s target of buying around 80 trillion yen bonds annually, says Souichi Takeyama, a rates strategist at SMBC Nikko Securities Inc. in Tokyo.
Alert: HALISTER1- “This is not tapering. But judging from median estimates, BOJ would be buying about 70t yen annually, below the 80t yen target,” he says
- BOJ will need to first lower the 80t yen target at its policy meeting before it begins any taper
- Latest BOJ bond buying plan suggests the central bank is letting yields longer than 25 years rise
- Also suggests BOJ may cut bonds in 1-to-5-year maturity but cutting the zone significantly will undermine annual target
Source: BFW (Bloomberg First Word)
Tickers
8301 JP (Bank of Japan)
People
Souichi Takeyama (SMBC Nikko Securities Inc)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283