BOJ’s November Bond Buying Plan May Outweigh Policy Decision
Source: BFW (Bloomberg First Word)
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Kazuhiko Sano (Tokai Tokyo Financial Holdings Inc)
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UUID: 7947283
(Bloomberg) -- With BOJ widely expected to stay on hold today, the central bank’s bond purchase plan for November may gain more attention as market participants look for signs of further reduced buying of super-long term debt.
Alert: HALISTER1- BOJ will release bond purchase plan at 5pm Tokyo time
- On Sept. 30, BOJ cut planned purchases for Japanese govt bonds by 10b yen per operation in maturities over 25 years and 10-25 years
- As a result, the central bank last month bought the least in those tenors since October 2014, purchasing 552.7b yen for maturities of more than 25 years and 954.1b yen for 10-25 years
- BOJ Governor Kuroda said on Oct. 27 it wouldn’t be strange for super-long-term yields to rise a bit and he doesn’t see immediate need to lower the yields
- Market has priced in a reduction of about 10b yen for both maturities of over 25 years and in 10-25 years sector, Kazuhiko Sano, chief bond strategist at Tokai Tokyo Securities, writes in note today
- If there is no cut in November purchases, market will react positively
Source: BFW (Bloomberg First Word)
People
Kazuhiko Sano (Tokai Tokyo Financial Holdings Inc)
To de-activate this alert, click here
UUID: 7947283