Reported 8 months ago
Traders are possibly overestimating the consequences of the Bank of Japan scaling back bond purchases, with expectations running high for BOJ to announce a plan next month to reduce its extensive debt portfolio. Despite the central bank's estimation that a 1% decrease in its bond market share leads to a 2 basis point rise in 10-year yields, several strategists believe that the increase in yields may not be as significant as forecasted by market participants. The BOJ aims to cautiously decrease bond purchases to avoid market upheaval, with different experts predicting various scenarios for the reduction in purchases over the next two years.
Source: YAHOO