• Some members said JGB market functionality improving as a trend due to BoJ's taper.
  • Other participants said there is distortion between super-long yields and yields for other maturities due to dwindling liquidity in super-long JGB market.
  • Some market participants called for faster pace of BoJ taper from fiscal 2026 though others called for maintaining or slowing pace.
  • Opinions from market players included those wanting new taper plan to cover about two years, and others saying BoJ should lay out a 1-year plan then maintain that taper level thereafter.
  • Opinions by market players on monthly BoJ bond buying amount at the end of new taper period ranged from zero, 1-2 trillion yen, and about 3 trillion yen.
Bank of Japan
Bank of Japan
Source: Forex Live