BOJ Tweaks Bond Buying Plan as Yields Drop on Banking Concerns
- Ten-year yield well below target as Fed tightening view eases
- Move offers opportunity for cuts to amount of purchases
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The Bank of Japan expanded the range of its planned bond purchases next quarter, allowing itself the possibility to dial back buying, as upward pressure on yields receded amid financial sector concerns.
The central bank will buy ¥100 billion to ¥500 billion ($752 million to $3.8 billion) of 10-to-25 year bonds per operation, compared with a range of ¥200 billion to ¥400 billion in the first quarter, according to its statement. It also widened the range of purchase amounts for other maturities above one year.