Latest news with #bondbuying
Japan Times
4 days ago
- Business
- Japan Times
Bank of Japan considering smaller reductions in bond buying
Bank of Japan officials are likely to discuss slowing their pullback from buying government bonds at a policy meeting later this month, according to people familiar with the matter. The officials will probably discuss making smaller reductions to the central bank's bond buying from the current paring pace of ¥400 billion ($2.8 billion) per quarter, according to the people. The internal debate is centered on whether to slow the pace of reductions to ¥200 billion per quarter from April next year or maintain the current pace, the people said. An amount between ¥200 billion and ¥400 billion is also possible, they said. The new plan will cover about one year, the people added. Gov. Kazuo Ueda's board is scheduled to conduct a review of the existing bond-buying program through March next year and map out a plan for purchases beyond that period at its two-day policy gathering ending June 17. The meeting will take place after Ueda clearly indicated that the bank will continue to pare back its purchases, prompting market players to focus on the scale of reductions and the duration of the new plan. Under the existing plan, the BOJ will roughly halve its monthly purchases to about ¥3 trillion early next year after embarking on quantitative tightening last summer. The BOJ is likely to state its readiness to step into the market in exceptional cases as a sign of flexibility, the people said.
Bloomberg
4 days ago
- Business
- Bloomberg
BOJ Is Said to Consider Smaller Reductions to Its Bond Buying
Bank of Japan officials are likely to discuss slowing their pullback from buying government bonds at a policy meeting later this month, according to people familiar with the matter. The officials will probably discuss making smaller reductions to the central bank's bond buying from the current paring pace of ¥400 billion ($2.8 billion) per quarter, according to the people.
Bloomberg
21-05-2025
- Business
- Bloomberg
BOJ Hearings Underscore Divergent Opinions on Bond Tapering Pace
The Bank of Japan heard mixed views from market participants over two days on how quickly it should taper its bond buying, input that will help guide its quantitative tightening plans as signs of strain build in the bond market. A wide range of opinions had been expected from participants including megabanks, regional lenders, securities firms and life insurers ahead of the hearings. Those with larger government debt holdings, such as local banks and lifers, were seen as likely to favor a slower pace of reductions to ensure a smooth transition, with recent jumps in yields illustrating that the pulling back of central bank buying isn't without risk.
Reuters
13-05-2025
- Business
- Reuters
UK's Reeves and Bailey hope repo system will make money for BoE
LONDON, May 13 (Reuters) - Bank of England Governor Andrew Bailey and British finance minister Rachel Reeves have raised the prospect of the BoE making money from its new system for providing reserves to banks after racking up huge losses from its bond-buying programme. The BoE has increasingly used its repo facilities as it sells down the holdings of government bonds that it began to buy as a stimulus measure during the global financial crisis of 2008-09 and which it continued to use until 2022. The long-run cost of the bond purchase programme could be around 120 billion pounds, opens new tab ($158.51 billion) as rising interest rates push down the value of the bonds. The government foots the bill for losses incurred by the BoE. In an exchange of letters published on Tuesday, Bailey and Reeves said the new, repo-based system was likely to prove less damaging for the public finances. "Dependent on the evolution of demand for reserves and the design of the Bank's repo facilities, the transition to repo is expected to generate income for the Bank and broader public sector," Reeves said in her letter to Bailey. The BoE governor said he expected the change to be profitable for the central bank. "As banks will be paying for the reserves they demand in this framework, we expect that our operations will generate positive income in the future," he said. ($1 = 0.7571 pounds)
