Drop in BOJ’s Bond Holdings Gives Market Taste of Quantitative Tightening
- Net bond purchases fell below zero for first time since 2008
- BOJ waiting for right time to cut buying: Norinchukin Research
The Bank of Japan (BOJ) headquarters in Tokyo.
Photographer: Akio Kon/BloombergThis article is for subscribers only.
Investors in Japanese government bonds have already had a taste of quantitative tightening by the nation’s central bank.
The BOJ’s net purchases fell to minus ¥2.79 trillion ($17.9 billion) in the first quarter as redemptions swelled, based on Bloomberg analysis of central bank data. While its holdings often drop in March, it’s the first time since 2008 that they’re down for the entire three-month period.