Bank of Japan to buy 1.2 trln yen in govt bonds next week-Nikkei

Sun Apr 7, 2013 5:51am EDT

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TOKYO, April 7 (Reuters) - The Bank of Japan (BOJ) is
expected to buy 1.2 trillion yen ($12.28 billion) in Japanese
government bonds next week with over five years remaining to
maturity as it begins a new monetary-easing scheme, the Nikkei
business daily said on Sunday.
    The central bank aims to make five purchases totalling 6.2
trillion yen in April. After that, it plans to make monthly
purchases of about 7.5 trillion yen in six instalments, the
Nikkei said in an unsourced report.
    A bank spokesman said no one was immediately available to
comment on the Nikkei report.
    The bank said on Thursday it would radically overhaul its
monetary policy and inject about $1.4 trillion into the economy
in less than two years by buying government bonds across the
yield curve.
    It also said it would combine two bond-buying programmes,
its asset-buying and lending plan and the "rinban" bond-buying
market operation, to buy JGBs with all maturities. 
 
    Monthly JGB purchases under the new programme will total
about 70 percent of newly issued debt.  
    Yields on benchmark 10-year Japanese government bonds
 sank to a record low of 0.315 percent on Friday.
    Last week's meeting was the first chaired by Governor
Haruhiko Kuroda since he took the helm of the central bank last
month with a vow to take aggressive steps to defeat deflation.
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