BOJ: Will increase its key 10-year JGB buying in April-June

The Bank of Japan (BOJ) publishes its quarterly schedule of outright purchases of Japanese government bonds (JGBs), as we head towards the second quarter of 2022.

Key takeaways

BOJ to conduct four market operations per month for 1-3-year JGBs, buy 475B yen at each operation (vs. 4 times in Jan-March, 450B yen per operation).

To conduct four market operations for 3-5-year JGBs per month, buy 475B yen at each operation (vs. previous 4 times, 450B yen per operation).

To conduct four market operations per month for 5-10-year JGBs, buy at each operation 500B yen (previous 4 times, 425B yen).

To conduct two market operations per month for 10–25-year JGBs, buy 125.0B yen at each operation (vs. previous 1 time, 150B yen).

To conduct two market operations per month for JGBs with over 25 -year until maturity, 50.0B yen at each operation (vs. previous 1 time, 50B yen).

Market reaction

USD/JPY is looking to recapture the 122.00 level, higher by 0.12% on the day. The spot hit a daily low of 121.35, with volatility on the rise thanks to the BOJ’s operations.

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