Bank of Japan Faces Shortage of Sellers in Bond-Buying Operation
- Regular operation sees shortage of sellers for 1-3 year notes
- It is the first such shortfall since stimulus ramp-up in 2013
This article is for subscribers only.
For the first time in at least a decade, there was a shortage of sellers on Thursday when the Bank of Japan offered to snap up regular government bonds in one its buying operations.
The unexpected outcome looks set to fuel speculation that the central bank will reduce debt purchases more broadly as it winds back monetary stimulus and allows borrowing costs to rise in Japan.