FILE PHOTO: The Japanese national flag waves at the Bank of Japan building in Tokyo, Japan March 18, 2024. REUTERS/Kim Kyung-Hoon/File PhotoTOKYO : The Bank of Japan is conducting a survey of Japanese government bond market participants over the central bank's bond-tapering plans, three sources familiar with the matter said on Thursday.
The BOJ decided to start tapering its huge bond buying and reduce its holdings which, at 589 trillion yen , make up roughly half of total Japanese government bonds sold in the market. The survey is asking the market participants, including banks, brokerage houses and life insurers, about their expectations over the range and pace of tapering, the sources said.
The diminishing presence of the BOJ heightens the need for the government to find stable buyers of JGBs and avoid a bond selloff that could trigger a damaging spike in yields.