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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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