Japan’s bond traders count on BoJ to tide over supply deluge

The central bank, which aims to keep the benchmark yields around zero percent under its yield curve control policy, has already increased its buying of bonds with maturities of one to 10 years to mitigate the impact of increased government borrowing via these tenors.

TOKYO: Keep calm and trust the Bank of Japan. That’s the mantra for traders in the nation’s bond market after the government boosted debt issuance by almost 40% to fund its stimulus spending.

Market reaction to Wednesday’s increase in planned bond sales to 212.3 trillion yen (US$2 trillion) for this fiscal year has been rather muted.