BOJ Stepping Up Efforts to Curb Excessive JGB Yield Falls

Economy Politics

Tokyo, Sept. 30 (Jiji Press)--The Bank of Japan is stepping up its efforts to curb excessive falls in Japanese government bond yields.

The BOJ is concerned that Japanese people's anxieties about their futures will increase further if pension funds face more difficulties managing their assets as a result of declines in yields on JGBs having more than 10 years to maturity, market sources said.

The BOJ aims to prevent such yields from dropping further by reducing the amount of JGBs it purchases from commercial banks through money market operations, informed sources said.

In a JGB purchase plan for October that was announced Monday, the BOJ lowered the ceiling for buying issues with remaining maturities of over three years by 50 billion yen per auction.

The central bank also said it "may change the frequency" of its JGB purchases when necessary, suggesting that it could reduce the buying operations from the current three to four times a month.

[Copyright The Jiji Press, Ltd.]

Jiji Press