BOJ unlikely to tweak JGB 1-10 year buys - Reuters

The Bank of Japan (BOJ) is unlikely to tweak 1-10 year JGB (Japanese Government Bond) purchases following the slight reduction in bond purchases in both the 10-15 year and 25-40 year sectors earlier this week, says Reuters Buzz. 

Key points

• Purchases of JGB 10s-25s reduced by Y10 bln, 25s-40s by Y10 bln.

• Given the reaction, especially in USD/JPY, move in 1-5, 5-10 issues unlikely.

• USD/JPY down from 113.40 Monday to as low as 111.27 overnight.

• JGB benchmark 10 yields up from 0.039% low Dec 26 to 0.080% close yesterday.

• BoJ very conservative and wants to maintain a view of ultra-easy policy.