21-05-2025
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.
