BOJ announces fixed-rate purchase plan for cheapest-to-deliver JGB notes

In a statement released on Wednesday, the Bank of Japan (BOJ) said it will conduct fixed-rate purchase operations for cheapest-to-deliver 357th Japanese government bonds (JGBs) notes for an extended period of time from September 1.

Additional details

Fixed-rate purchase operations for 356th 10-year JGBs to be conducted for consecutive days through Sept 20.

Decides to relax terms, and conditions for securities lending facility for cheapest-to-deliver JGB notes.

To increase the upper limit on consecutive-day purchases of cheapest-to-deliver issues to 75 business days from the current 50 days.

Relaxed terms, conditions to take effect from Sept 1.

Market reaction

USD/JPY is holding steady around 138.75, showing little to no reaction to the above headlines.