Global broker BGC Partners is moving into yen swaps due to recent rate volatility. Meanwhile, the Bank of Japan (BOJ) has announced changes to its bond-buying program for the January-March quarter, as detailed in a Goldman Sachs chart. The BOJ plans to purchase between 50 billion to 350 billion yen of Japanese Government Bonds (JGBs) with over 25 years of maturity twice, compared to three times in the previous quarter. Additionally, the BOJ will cut the amounts for regular bond-buying operations. For JGBs with 5-10 years of maturity, the BOJ intends to buy between 400 billion to 900 billion yen four times, which is a slight decrease from the previous quarter's range of 450 billion to 900 billion yen. The plan also includes buying between 100 billion to 500 billion yen of 10-25 year JGBs three times, down from four times in the prior quarter. It's noteworthy that the BOJ owns 50% of the JGB market, with 95% of bonds held domestically.
*BOJ CUTS JAN-MAR JGB BUY FREQUENCIES IN 2 ZONES, TWEAKS AMOUNTS* @markets
🔴 BOJ: THE PLAN IS TO BUY BETWEEN 50 BLN TO 350 BLN YEN OF JGBS WITH MORE THAN 25 YEARS OF MATURITY 2 TIMES IN JAN-MARCH (VS 50 BLN TO 350 BLN YEN, 3 TIMES IN THE PREVIOUS QUARTER).
🔴 BOJ: THE PLAN IS TO BUY BETWEEN 100 BLN TO 500 BLN YEN OF 10-25 YEAR JGBS 3 TIMES IN JAN-MARCH (VS 100 BLN YEN TO 500 BLN YEN, 4 TIMES IN THE PREVIOUS QUARTER).
🔴 BOJ THE PLAN IS TO BUY BETWEEN 400 BLN TO 900 BLN YEN OF 5-10 YEAR JGBS 4 TIMES IN JAN-MARCH (VS 450 BLN TO 900 BLN YEN, 4 TIMES IN THE PREVIOUS QUARTER).
🔴 THE BOJ IS TO CUT AMOUNTS FOR REGULAR BOND BUYING OPERATIONS IN THE JANUARY-MARCH QUARTER.
#Japan #BoJ owns 50% of #JGB market and 95% of #bonds are held domestically, chart @GoldmanSachs https://t.co/JRr3Bw96bl
Rate Volatility Spurs Global Broker BGC to Move Into Yen Swaps https://t.co/GzMbcFkRO5