The Bank of Japan remains convinced it doesn’t need to take any further measures to improve the functioning of the government debt market for now after offering more clarity on its bond-buying operations, according to people familiar with the matter.
Ahead of a two-day policy meeting through Friday, central bank officials said it is still too early to judge whether tweaks made to the central bank’s policy framework in March have been ineffective in improving the functioning of the Japanese government bond (JGB) market.
The officials see the greater transparency on its operations helping ensure yields are more closely aligned with market conditions by limiting investors’ reactions to its own purchases, the people added.
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