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Japan-Update

Crimped market ever reliant on BOJ lending government bonds

Financial institutions borrow longer from central bank amid dried-up supply

TOKYO -- Unable to find the government bonds they need on the market, Japanese financial institutions are relying on the costly measure of borrowing from the Bank of Japan for days on end, underscoring the strain caused by the bank's grip on the assets.

The BOJ has become the largest holder of Japanese government bonds, buying the securities in huge quantities as part of its monetary easing operations.

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