On the 23rd, the Bank of Japan implemented an expanded fund-supply policy for the first time to encourage a decline in long-term interest rates, supplying about 1 trillion yen.
As a result, long-term interest rates fell in the bond market.
On the 18th of this month, the Bank of Japan introduced a fund-supplying policy called the ``Common Collateral Fund-Supplying Operation,'' in which financial institutions lend funds at low interest rates based on the collateral they pledge to the Bank of Japan. has been expanded.
By supplying financial institutions with funds to purchase government bonds, even if the Bank of Japan does not directly purchase government bonds, financial institutions will buy government bonds or take advantage of price differences between markets to take advantage of the so-called arbitrage. It is intended to encourage lower interest rates.
On the 23rd, the Bank of Japan provided about 1 trillion yen of funds with a loan period of 5 years for the first time since expanding this system.
In response to this, the bond market has expanded the movement to buy back government bonds, and long-term interest rates have temporarily declined to 0.375%.
However, there is a deep-rooted view among overseas investors that the Bank of Japan will soon be forced to revise its monetary easing measures. I am looking to sell.
Mark Dowding, Chief Investment Officer of BlueBay Asset Management, said, "The current framework of monetary easing by the Bank of Japan has achieved its objective of raising prices, and the policy has finished its role. If it exceeds 4%, I expect a policy change as early as March."