BOJ Likely to Focus on Cutting 10-Year Bond Buying, Data Suggest
- Central bank holds two-thirds of short to long notes
- March futures contract has very few CTD notes in market
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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%.