It turned out that the total amount of long-term government bonds purchased by the Bank of Japan last month exceeded 16 trillion yen, the largest ever for a month.
The main reason for this is the daily implementation of unlimited purchases of government bonds at specified yields in order to curb the rise in long-term interest rates.
On the 7th, the Bank of Japan announced a "monetary base" that shows the amount of money it is supplying to the market.
According to this, the total amount of long-term government bonds purchased last month was 16,203.8 billion yen, the highest ever for a month.
It is a form that greatly exceeds the maximum of 11 trillion yen in April 2016.
Japanese government bonds have become easier to sell due to the effects of US monetary tightening, and long-term interest rates have risen to near the upper limit of "about 0.25%" indicated by the Bank of Japan as part of large-scale monetary easing. By implementing a measure called "limit operation" to buy unlimited government bonds every day, the total amount has increased significantly.
As a result, the rise in long-term interest rates has been suppressed, but as of the end of last month, the balance of long-term government bonds held by the Bank of Japan was 528.2267 trillion yen, the highest ever, reaching about half of the balance issued by the government. You can see it.
In the market, there are concerns that the so-called “exit strategy” to reduce monetary easing will have a greater impact on the financial markets, and the Bank of Japan is likely to be required to steer difficultly in the future.