BoJ says it plans to buy JPY 255bln of 1–3 year JGBs three times a month in April–June (prev. JPY 270bln, three times); JPY 230bln of 3–5 year JGBs three times a month (prev. JPY 245bln, three times)

The BoJ's decision to reduce its planned purchases of JGBs, particularly in the 1-3 year and 3-5 year segments, signals a slight tightening in its bond-buying program.

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BoJ says it plans to buy JPY 255bln of 1–3 year JGBs three times a month in April–June (prev. JPY 270bln, three times); JPY 230bln of 3–5 year JGBs three times a month (prev. JPY 245bln, three times)

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  • Plans to buy JPY 80bln of 10–25 year JGBs three times a month in April–June (prev. JPY 95bln, three times).
  • Plans to buy JPY 75bln of JGBs 25+ years of maturity two times a month (prev. JPY 75bln, two times).
Context

This adjustment could indicate a shift in monetary policy dynamics, potentially strengthening the JPY as the market interprets it as a step towards normalizing policy amidst a backdrop of economic recovery. Traders should watch for impacts on bond yields and cross-asset correlations, especially in relation to risk sentiment and inflation expectations.

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