Investors Split on Whether BOJ Will Cut Bond Buying Again Today
- BOJ may cut buying of three-five year notes: AllianceBernstein
- Calm yen may prompt BOJ to stay put: Sumitomo Mitsui Trust AM
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Investors are divided on the likelihood of the Bank of Japan repeating its surprise move earlier this week by reducing purchases of government bonds in a regular buying operation this morning.
Against the backdrop of a weak yen and wide yield gap between Japan and the US, the BOJ on Monday offered to buy a smaller amount of 5-to-10 year debt than in its previous operation. That had fueled speculation of the same happening today at the 10:10 a.m. operation, until US inflation data on Wednesday eased pressure on the yen and the yield divide.