Update on the BOJ meeting next week - unlimited JGB purchases ahead?

Author: Eamonn Sheridan | Category: Central Banks

Adam had the Bank of Japan speculation overnight and the spike following in USD/JPY:

  • In a nutshell the news is the Nikkei reported the BoJ will discuss allowing unlimited government bond purchases, while keeping the 10-year target at 0%.
(ps. The current JGB buying target is 80tln a year)

The thing is the buying the Bank is doing is hitting that 0% the target, its not clear that extra buying from them would achieve what is … already … being ... achieved. 
The other thing is the current target of 80tln yen has been missed by the Bank for years (to the downside)  - they don't even need to buy that amount.

Perhaps of more significance is the report noted the BoJ will also double purchase targets for commercial paper and corporate bonds, doing this could keep yields on those products lower than otherwise.

BOJ meet on Monday next week. It was a regular 2 day meeting but has been shortened to one day only, 9am - 12 noon (Tokyo time) although that end time is flexible. 

Adam had the Bank of Japan speculation overnight and the spike following in USD/JPY:Wondering what to do on his Tuesday off. 

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