TOKYO -- The Bank of Japan plans to trim purchases of Japanese government bonds with more than five years to maturity, according to a monthly outline released by the bank Friday.
The BOJ is narrowing October purchases of JGBs with extended time to maturity in order to ease downward pressure on long-dated rates. The central bank "may change the purchase size, taking into account market conditions," in order to achieve desired levels for long-term interest rates, according to the outline. By focusing on current rate movements and abandoning fixed purchasing amounts, the BOJ is making a radical departure from past policy positions.
