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BOJ May Stop Cutting Bond Purchases With Yields on the Rise

  • Central bank expected to keep ranges steady for all maturities
  • Minor tweaks possible within ranges if yields decline
Updated on

The ‘stealth’ tapering of bond buying by the Bank of Japan may take a summer break, at least for June.

With medium-term Japanese government bond yields on the rise, a further scaling back of monthly debt purchases -- details of which are due for release Wednesday -- could risk upsetting the market, strategists say. That means the central bank may keep the pace of buying as is for now, after reducing it in recent months.