Ex-BOJ board member Shirai speaking to Reuters 7 July
- rises in yields temporary, driven by US and European market moves
- many investors waiting to buy on dips
- BOJ may briefly accelerate JGB buying to contain yield rises but wont need to increase buying in huge amounts to achieve yield target of 0%
- BOJ already slowing its purchases to around 50-60 tln yen despite a loose pledge to buy at a pace that increases its holdings by 80 trln yen per year
"What the BOJ is doing is implicit tapering. That was probably the BOJ's key aim in revamping its policy framework last year. They knew it was getting more difficult to maintain the current pace of bond buying"
The BOJ may briefly increase its nond buying when yields are rising as is the case now but I don't think it will be forced to keep buying at a pace well above 80trln yen to control yields as there's always strong appetite for JGBs in the market"
Eamonn had this on the earlier bond buying boost from BOJ.
Meanwhile USDJPY 113.68 just nudging up again after a dip into 113.50 from 113.80. Underpinned still after the early Asia rally from 113.10 but offers/res building between 113.80-00
Shirai- BOJ in implicit tapering move
