Fixed Income Commentary

Q&A on detailed BoJ plan for reducing bond purchases

Download PDF Printable Version

Q&A on detailed BoJ plan for reducing bond purchases

Key points
  • Attention is focused on scale and pace of reductions in BoJ bond purchases in upcoming "detailed plan," but there are also many other points to watch
  • These include framework for buying operations, maturity profile of purchases, eventual goal of balance sheet normalization, and market’s ability to absorb debt
  • Reductions seen influencing market via various pathways including signaling effect, transparency of operations, stock effect, and JGB supply/demand

I understand that any materials on this website have been produced only for persons regarded as professional investors (or equivalent) in their home jurisdiction and in jurisdictions which the MUFG entity producing the material is permitted to do so under applicable laws, rules and regulations.

I also understand that all materials on this website are not investment research or investment advice.