BoJ trims 3-5 year JGB auction size range

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The Bank of Japan has reduced the amount of 3- to 5-year Japanese government bonds it intends to buy during May.

The central bank announced today it planned to next month buy ¥‎250bn to ¥‎350bn ($2.25bn to $3.14bn) of JGBs with maturities between three and five years, which was down from the ¥‎300bn-¥‎400bn bought during April.

That April figure was itself a reduction from March, where the BoJ bought about ¥‎350bn-¥‎450bn of JGBs with maturity of three to five years.

For April, the BoJ flagged buying a smaller amount (¥‎200bn-¥‎300bn) of 1- to 3-year JGBs, about ¥‎100bn less than in March.

Since late last year, the BoJ has been trying to control the yield curve, and has been targeting a 10-year JGB yield around zero. Reducing purchases of shorter duration maturities should have the effect of increasing the shorter end of the curve.

The yen was flat at ¥‎111.30 per dollar.

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