Nomura Securities in Tokyo say that the Bank of Japan is likely to boost purchase amount of 3-to-5-year bonds at its regular market operations today
- To contain rise in 5-year yield and alleviate upward pressure on 10-year sector
- Boost in purchase amount is "inevitable"
- Likely to increase to 350b yen, (from 300b at previous similar operation)
(via Bloomberg)
ps. The BOJ pre-announce its JGB buying plans (dates and amount ranges) for each month. Here are the plans for July (ICYMI).
If the BOJ do what Nomura expect there will be a knee-jerk USD/JPY move up.
