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BoJ’s JGB purchases to slow further

The Bank of Japan’s purchases of JGBs have now fallen to around ¥60 trillion per annum and they are likely to be cut further to ¥40 trillion over the next couple of years. However, this shouldn’t have a noticeable impact on financial conditions as the Bank looks very likely to keep its target for 10-year government bond yields unchanged for the foreseeable future.

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