Bank of Japan increases bond purchases

The Bank of Japan (BOJ) has increased the amount of regular bond purchases amid rising bond yields due to volatility in global markets. The bank is expected to increase its purchases even further in the October-December period. The Bank of Japan (BOJ) has increased its regular asset purchases in an effort to reduce the upward pressure on yields amid volatility in global markets. The bank increased its purchases of Japanese government bonds with maturities of 5-10 years from 500 billion yen to 550 billion yen ($3.8 billion). It left its purchases of bonds with maturities of 3-5 years and 10-25 years unchanged. Like other Asian countries, Japan is accelerating its steps amid concerns that monetary tightening will hit global growth. In Japan’s case, expectations that the Bank of Japan may change its ultra-loose monetary policy stance in order to narrow the bond gap with other countries are putting pressure on bonds. The bank’s acceleration of bond purchases has raised expectations that purchases may also be increased for the October-December period. The 10-year bond yield had risen to the upper limit of the level set by the bank at 0.25 percent earlier this week.