TOKYO -- Market players increasingly believe it is likely that the Bank of Japan will maintain its level of purchases of short- and medium-term Japanese government bonds for now, as their yields continue to move toward where the bank wants them to be.
The BOJ has reduced its buying of short- and medium-term JGBs since March in response to tight demand. Even with the scaled-back central bank purchases, short- and long-term interest rates dropped on some occasions, affected by geopolitical uncertainties stemming from such events as the French presidential election.
