Back
29 May 2013
Flash: BOJ to increase the frequency of JGB purchases- Nomura
FXstreet.com (Barcelona) - Nomura strategist Yujiro Goto notes that the BOJ held a meeting with JGB investors today, and an official said traders want the Bank to conduct outright JGB buying operations (rinban operations) more frequently, according to Bloomberg.
He adds that the official also stated that participants wanted smaller amounts at each operation. Goto sees that the BOJ is going to release its bond purchasing operation plan for June tomorrow, but the Bank is likely to increase the frequency of operations with smaller amounts. Further, the BOJ conducted eight rinban operations in May, but the operations are likely to be held for more than 10 business days in June, according to the official. he writes, “In addition, participants said that the BOJ should increase 1-5yr bond purchases and that the monthly bond target can be flexible. There was also a discussion to extend the maturity of fixed-rate fund supplying operations against pooled collateral from the current maximum maturity of one year.”
He adds that the official also stated that participants wanted smaller amounts at each operation. Goto sees that the BOJ is going to release its bond purchasing operation plan for June tomorrow, but the Bank is likely to increase the frequency of operations with smaller amounts. Further, the BOJ conducted eight rinban operations in May, but the operations are likely to be held for more than 10 business days in June, according to the official. he writes, “In addition, participants said that the BOJ should increase 1-5yr bond purchases and that the monthly bond target can be flexible. There was also a discussion to extend the maturity of fixed-rate fund supplying operations against pooled collateral from the current maximum maturity of one year.”