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BOJ Cuts Purchases Of 5-10 Year Bonds For The First Time Since December
One of the more jarring, if underreported shifts in the world of central bank finance over the past three years, was the dramatic decline in the BOJ's annual purchases of JGBs, which has shrank drastically from its 2015 peak, and was back to levels first seen just after the start of Japan's QQE. And yet despite this obvious tapering in the BOJ's QE, the yield on 10Y JGBs has not increased; on the contrary, courtesy of the paralyzed Japanese bond market, where barely anyone is left to trade with the BOJ now owning more than half of all government bonds, price formation has been made virtually impossible, and ... (full story)