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BOJ Likely to Focus on Cutting 10-Year Bond Buying, Data Suggest
A planned cut to the Bank of Japan’s bond purchases will probably focus on seven- to 10-year notes, data on the BOJ’s debt portfolio suggest. The monetary authority’s holdings are concentrated on tenors of 10 years and shorter, where it owns about two-thirds of the amount outstanding. The share in debt maturing in more than 10 years is much smaller at 26%. The BOJ holds 83% of the so-called cheapest-to-deliver securities for the front-month futures contract, and this share jumps to a whopping 95% for the March contract. Memories are still fresh of how BOJ operations sucking CTD debt led to a blowup in an ... (full story)