BoJ trims 3-5 year JGB auction size range

Listen to this article

00:00
00:00

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.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.