BOJ purchase limit increase from July 22:45 on June 30 in response to the new Corona
Due to the government's economic measures against the new coronavirus, an additional 100 trillion yen of government bonds will be issued this year. The BOJ plans to increase the maximum purchase amount of government bonds per transaction from July, and the holding of JGBs, which has already reached about 500 trillion yen, is likely to increase.
The Bank of Japan is buying a large amount of government bonds as a large-scale monetary easing measure.
On July 30th, we announced the purchase plan for July, and the redemption period from 3 years to 5 years or less JGBs will increase from about 450 billion yen to about 500 billion yen, and from 5 years to 10 years. JGBs under the year have increased by about 50 billion yen, up from about 550 billion yen up to about 600 billion yen.
The government plans to increase the issuance of government bonds as a financial resource for implementing economic measures against the new coronavirus, and to issue additional government bonds of nearly 100 trillion yen this year, including FILP bonds.
In April, the BOJ decided to implement additional monetary easing to aggressively purchase government bonds in conjunction with the government's economic measures, and the increase in purchases is in line with this policy.
Since the issuance of large amounts of government bonds may cause long-term interest rates to rise, the Bank of Japan aims to curb the rise in interest rates by actively purchasing government bonds.
However, as of the end of March, the BOJ's JGB holdings amounted to 499 trillion yen, close to half of the outstanding JGB issuance amount, and the composition of the BOJ's large holding is likely to progress further.