Fixed Income Commentary

Q&A on detailed BoJ plan for reducing bond purchases

• Attention is focused on scale and pace of reductions in BoJ bond purchases in upcoming "detailed plan," but there are also many other points to watch
• These include framework for buying operations, maturity profile of purchases, eventual goal of balance sheet normalization, and market’s ability to absorb debt
• Reductions seen influencing market via various pathways including signaling effect, transparency of operations, stock effect, and JGB supply/demand