On the 16th, the Bank of Japan reduced JGB purchase transactions over a remaining period of more than 5 years and less than 10 years. The long-term interest rate is expected to ease supply and demand in the 10-year zone, such as buying long-term interest rates at the lowest level in three years.
Bank of Japan JGB Purchase Transaction on 16th (Amount is 100 Million Yen)
|review Amount||Last operation||Comparison|
|5-10 years||4500||4800||▲ 300|
In the bond market, the yield of recently issued 10-year JGBs, which is an indicator of long-term interest rates, fell to levels since July 2016 and fell temporarily to minus 0.255% following the announcement of the Bank of Japan's operation at 1 p.m. 10:10.
BNP Paribas Securities Yusuke Igawa Bond Strategist pointed out in the report that even if the long-term interest rate is minus 0.25%, if it is only reduced by several tens of billions of yen, the interest rate is expected to fall further.
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