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2/28/2017, 1:08 PM (Source: TeleTrader)
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BoJ outlines first monthly bond purchase plan

Japan's central bank said on Tuesday that it will buy government bonds worth at least ¥1.38 trillion ($12.3 billion) in March. The maximum amount is set at ¥2.18 trillion but the statement clearly notes "the frequency" may be increased. It is the first time policymakers came out with a schedule for auctions, including volumes intended for purchases, as part of the strategy to keep yields on ten-year debt close to zero.

So-called JGBs at competitive auctions, with coupons, have the maturity of 2, 5, 10, 20, 30 and 40 years, while the Bank of Japan is also buying floating-rate and inflation-indexed securities in the segment. Outright purchases at fixed-rate method will be conducted the auction as needed, "such as when the level of the yield curve changes substantially" and policymakers can determine a fixed or unlimited size.

The introduction of a schedule comes after last month unpredictability prompted a surge in yields to a one-year high. The outline signals the BoJ's short-term bond operations would be slightly reduced. 

Baha Breaking News (BBN) / IT