The Bank of Japan (BOJ) has trimmed purchases of bonds maturing in three to five years for the first time since July 3, according to Bloomberg.
The central bank will be buying JPY 360 billion of bonds maturing in three to five years – down JPY 20 billion from the previous purchase. Meanwhile, the BOJ will reduce purchases of bonds maturing in 10-25 years by JPY 20 billion to JPY 160 billion and increase purchases of government bonds maturing in one to three years to JPY 400 billion from the previous figure of JPY 380 billion.
These changes are a part of routine operation and do not amount to QE taper. The USD/JPY pair has barely moved in response to the decision by the BOJ to boost purchases at the short end of the curve. The pair is currently trading at 105.91.
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