Bank of Japan tweaks QQE with maturity extension and new ETF purchases
BoJ will continue to buy 80 trillion yen worth of JGBs a year
The Bank of Japan (BoJ) will start buying Japanese government bonds (JGBs) with longer to run until maturity next year, as part of a series of tweaks to its quantitative and qualitative easing (QQE) program unveiled today (December 18).
It will continue buying JGBs at an annual pace of ¥80 trillion ($658 billion), as expected by the market. From the beginning of next year, however, its purchases will carry an "average remaining maturity" of 7–12 years, up from 7–10 years at present.
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