BoJ offers to buy Y 75 bln JGBs (residual maturity is more than 25YR) outright from 7/16

The Bank of Japan (BoJ) has announced an outright purchase of ¥75 billion in Japanese Government Bonds (JGBs) with a residual maturity of more than 25 years, effective from July 16, 2026. This operation is part of the BoJ’s ongoing market intervention strategy to manage liquidity and support monetary conditions in line with its broader policy objectives.

The purchase will be conducted through a conventional competitive auction, a standard method used by the BoJ to acquire JGBs across various maturities. These operations are designed to influence interest rates and ensure stability in the government bond market. The BoJ has consistently updated its quarterly schedules for such purchases, with recent releases outlining the parameters for the July-September 2026 period.

Historically, the BoJ has maintained a robust schedule of JGB purchases, with total purchases reaching ¥9,820.30 billion in July 2023 and peaking at ¥23,690.20 billion in January 2023. The current purchase of ¥75 billion in long-dated JGBs aligns with the central bank’s strategy to manage long-term interest rates and support economic activity amid evolving market conditions.

The BoJ’s market operations are guided by its commitment to achieving price stability and ensuring the smooth functioning of financial markets. These purchases are part of the broader framework of Quantitative and Qualitative Monetary Easing with Yield Curve Control, introduced in September 2016. By intervening in the bond market, the BoJ aims to maintain accommodative monetary conditions and support economic recovery.