CORRECT: BOJ FY14 Debt Rollover Said Set to Be Similar to FY13

(Corrects currency conversion) Bank of Japan’s direct debt purchases from government may be capped in next financial year at about current level, bucking some forecasts for increase of as much as 18 trillion yen ($185 billion). * Direct purchases of one-year bills won’t jump significantly from this year’s 11.7 trillion yen, according to government officials familiar with the matter who asked not to be named, citing policy. That assessment was echoed by people familiar with central bank discussions who asked not to be named because their talks were private. * A big increase in the BOJ’s direct purchases of Japanese government bonds, which are made by rolling over maturing debt into short-term bills, could fuel speculation that the central bank is financing government spending, the people familiar and the officials said. Royal Bank of Scotland Plc had estimated a rollover of about 25 trillion yen in the year starting in April, while Credit Agricole SA (ACA), Meiji Yasuda Life Insurance Co. and Mizuho Research Institute Ltd. forecast as much as 30 trillion yen.

To contact the reporter on this story: Toru Fujioka in Tokyo at tfujioka1@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

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