BOJ’s Kuroda – JGB buying may fluctuate

Bank of Japan (BOJ) governor Kuroda, while speaking in Parliament, said that the pace of Japanese government bond (JGB) buying may fluctuate from the target of JPY 80 trillion.

Markets fear that BOJ’s yield curve control – keeping 10-yr yield around zero percent – would result in a significant rise/drop in the bond buying.

The yield on the 10-yr bond edged up today after the bank said it trimmed its purchases of JGBs with five to 10 years of maturity to JPY 410 billion ($4.04 billion) from JPY 430 billion on Wednesday.