Will the Bank of Japan Slow Normalization? | Presented by CME Group
heightened volatility in the Japanese government bond market has led the Bank of Japan to consider slowing the pace of tapering in its bond purchases from next fiscal year moving forward longerterm yields have spiked to record highs reflecting investors concern over Japan’s worsening public finances a decision is expected to be made next week when the board reviews their current tapering plan and tries to map out 2026 at their last meeting a few weeks ago the Bank of Japan received numerous requests from bond market participants to cut its quarterly taper size to approximately 200 billion yen that would be half the size of the reduction under the current plan from last year the Bank of Japan began tapering its huge bond buying last year to wean the economy off decades of massive stimulus and to try and breathe life back to a market made dormant by its huge presence but having ditched a bond yield control policy last year the Bank of Japan is in no mood to ramp up bond buying in the wake of recent rises in those super long bond yields as medium and shorter maturity bonds as well as bank lending rates remained stable [Music]
The Bank of Japan’s massive program of quantitative easing, begun in 2013 and at its height involving annual purchases of Â¥50 trillion in government bonds, is now being scaled down. However, as Japan’s economic outlook deteriorates, what are the risks of an overly zealous normalization? Presented by @cmegroup Â
https://www.cmegroup.com/openmarkets/quicktake-by-bloomberg.html?utm_source=youtube&utm_medium=paid_social&utm_campaign=quicktake_evergreen&utm_content=more_insight
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