BoJ likely to end bond purchase cuts next year


A recent surge in super-long bond yields reflects the challenges for authorities pursuing a quantitative tightening path. — Bloomberg

TOKYO: The Bank of Japan (BoJ) will probably decide to stop reducing the amount of its government bond purchases in a plan for next fiscal year when authorities gather this month, as they eye a worrisome surge in Japanese Government Bond (JGB) yields, according to a former BoJ board member.

Since last summer, the bank has been reducing its buying of government bonds by 400 billion yen every quarter, but that process will come to a halt, former board member Makoto Sakurai said in an interview Monday.

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