BOJ Cuts Purchases of Super-Long Bonds for First Time Since July

(Bloomberg) — The Bank of Japan lowered purchases of super-long maturity bonds at its regular operation on Friday, the first reduction in the segment since July.

The central bank cut buying of debt due in more than 25 years by 10 billion yen ($88.9 million) to 50 billion yen. The yield on benchmark 10-year bonds erased its 0.5-basis point drop for the day following the BOJ’s move. The 40-year yield rose 0.5 basis point to 0.995 percent.

The decision suggests that the central bank is pressing ahead with its stealth tapering even while continuing to maintain an ultra-loose monetary policy stance, as Japan’s inflation remains far from its 2 percent goal.

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