Economics
BOJ Paves Way to Buy More Short-Tenor Bonds to Offset Supply
- Move in line with BOJ aim of preventing rise in yields: Daiwa
- BOJ earlier on Monday vowed to buy as many JGBs as needed
Bank of Japan Governor Haruhiko Kuroda takes a question during a news conference the central bank's headquarters in Tokyo, on April 27.
Photographer: Shinnosuke Ito/The Asahi Shimbun/Bloomberg
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The Bank of Japan paved the way for itself to buy more shorter-end debt in May, seeking to mitigate the impact of increased government borrowing on markets.
The central bank widened the indicative buying range for debt maturing in 1-to-10 years, while reducing by one the number of days it will buy 3-to-5 bonds in May, according to its statement on Monday. The overall amount to be spent on purchases of debt due in up to a decade may increase by about 375 billion yen ($3.5 billion) next month.