Some bond market participants urged the Bank of Japan to boost buying of super-long bonds, or terminate tapering for that maturity, in the wake of sharp rises in their yields, a summary of opinions collected by the central bank showed on Tuesday.
They were divided on the desirable pace of the BOJ's bond tapering from fiscal 2026 onward, with some calling for the bank to eventually stop buying Japanese government bonds (JGB) altogether, while others said it should continue to buy up to 3 trillion yen ($20.77 billion) per month.
"Market liquidity for super-long JGBs has declined sharply, so the BOJ should consider responding nimbly, such as by halting taper, increasing the amount it buys," or tweaking the distribution of JGBs it buys, an opinion quoted in the summary showed.
The request was made in a survey the BOJ conducted of bond market participants to collect their views on an existing taper plan running through March, and how the bank should slow its bond buying thereafter.
The BOJ will take into account the findings from the survey at its policy meeting on June 16-17, when it will review the existing taper plan and come up with a programme for fiscal 2026 onward.
($1 = 144.4400 yen)
