Bloomberg citing head of the department that oversees debt issuance at Japan's Ministry of Finance. Michio Sato, dubbed Mr. JGB.
- Investors should start preparing for a return to normal Japanese bond trading as the central bank will one day step back from its debt purchases
- Ministry of Finance has already started looking into a comprehensive review to ensure there’s sufficient depth and liquidity in the market
As for timing, he really isn't much help:
“I don’t know when exactly, but the time will eventually come when the central bank is no longer the main buyer of JGBs,”
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the Bank of Japan currently holds around half of JGBs that are outstanding. And are still buying.
Here is the link to Bloomberg for more.
