OctaFX | OctaFX Forex Broker
Open trading account
Back

Forex Flash: BOJ may increase the frequency of JGB buying operations - Nomura

FXstreet.com (Barcelona) - Nomura Strategist Yujiro Goto notes that the BOJ may increase the frequency of JGB buying operations.

He adds that the BOJ had its second meeting with market participants to discuss the JGB market after the new policy framework was introduced on April 4. He adds that an official statement has not been released as the first meeting was last week, but the Bank is considering increasing the frequency of outright JGB buying operations (rinban operations), which are currently scheduled to be held six times per month. Additionally, the JGB market has been volatile since the BOJ‟s decision and yields are now higher than the level before the decision. He writes, “We think higher domestic yields will discourage Japanese investors from diversifying their portfolios into foreign assets and thus, expectations for Japanese investors to create sustained JPY weakness trend will likely decrease. While the decision to increase the frequency of JGB buying operations has not yet been made, the BOJ‟s efforts should stabilize the JGB market gradually, which will be positive for USDJPY in the medium term, in our view.”

Forex: EUR/JPY falls below 128.00

The euro has extended its decline against the Japanese Yen with the pair falling around 100 pips in the latest couple of hours from 128.95 to break below the 128.00 mark and reach its intra-day low at 127.60.
Read more Previous

Forex: EUR/USD keeps falling, around 1.3035/40

The single currency is retracing Tuesday’s gains, hovering over 1.3035/40 and on its way to test weekly lows in the vicinity of 1.3020 (Monday 16th)...
Read more Next
Start livechat