Speculation the Bank of Japan will ease policy further next week, Adam had the headline overnight:
QE-finity: BOJ to remove bond-buying limit
- In a nutshell the news is the Nikkei reported the BoJ will discuss allowing unlimited government bond purchases, while keeping the 10-year target at 0%.
I posted on what I thought of this (spoiler - its a meaningless step if the BOJ take it)
- Update on the BOJ meeting next week - unlimited JGB purchases ahead? (read the post for why this is b/s but in brief the BOJ have a 80tln target of JGBs to buy to hit their yield target and they do not even need to buy anywhere near this to hit it)
A few comments from analysts:
Mizuho Securities:
- BOJ's 80 trillion yen target has long lost substance
Sumitomo Mitsui:
- Should BOJ decide to adopt unlimited bond buying, the actual effect of such a step would be marginal
BNZ:
- would have no impact on the market at the moment, with the Bank achieving the yield target easily.
